Future Shock: Will Artificial Intelligence Spell The End of the Middle Class?

AI advances are encroaching on the domain of knowledge workers. What can be done to ensure we remain masters of technology, and not its subjects?

Caught in the Crosscurrents of Technological Change

As mid-career professionals, we stand at a pivotal moment in history. Artificial intelligence promises to reshape industries virtually overnight, bringing both promise and peril. Will we ride this wave into a bright new era of human achievement, or will we be pulled under by the rushing tide of progress? I believe we still have agency in determining our fate. By taking proactive steps to harness AI’s potential while mitigating its risks, we can chart a course toward inclusive prosperity. Join me as we dive deeper into the profound question:

Will AI Speed the Disappearance of the Middle Class or Power Its Reinvention?

The Squeezed Middle Seeks Solid Ground

The middle class has been the bedrock of social stability and economic mobility for generations. But today, as I will discuss below, it stands on increasingly shaky ground. Stagnant wages, rising costs of living, and a winner-take-all economy have put the squeeze on families who once felt economically secure. As AI and automation expand into knowledge work, even highly trained professionals feel vulnerable. From financial analysts to medical technologists to attorneys, good jobs once considered “safe” from disruption now appear at risk as algorithms become more sophisticated. Some even foresee a “hollowed-out” economy—with a few high-skill, high-pay elites on top, and masses of low-skill, low-pay workers serving them from below. Such a path could further strain and threaten the middle class.

The Stormclouds on the Horizon

Retirement Lifestyle trends

Recent data from the Employee Benefit Research Institute's 2022 Retirement Confidence Survey paints a concerning picture of Americans' outlook on their post-work lives. The percentage of people expecting to have a worse retirement than they anticipated has jumped 4 percentage points since 2020, rising from 17% to 21% in just two years. Simultaneously, the proportion feeling they'll exceed retirement expectations has dropped from 28% to 26%. This growing pessimism stems not from the pandemic or technological advances but from economic troubles and unrelenting inflation whittling away nest eggs. With consumer prices projected to keep increasing for the foreseeable future, retiree apprehension will likely worsen absent intervention. Ultimately, more middle-class Americans feel unprepared for and anxious about funding their golden years.

The Global Economy’s Inflation Disruption

The economic outlook is troubling, with producer prices skyrocketing over 40% since 2020—the highest inflation rate in 40 years. The culprit? Massive government stimulus packages printed trillions in new money to blunt pandemic impacts. While necessary, this monetary swell has wreaked havoc on inflation. Currency markets now appear detached from reality, foreshadowing immense economic turbulence ahead. Experts dub these chaotic conditions the Great Disruption. Pain will outweigh gain, creating armies of losers as opposed to sparse winners. Retirees and other long-game investors will suffer most, watching nest eggs shrink as prices outpace portfolios. This era of heightened inflation and market disconnect presages financial destruction for multitudes unprepared for the brewing economic storm. It will likely require years for equilibrium to return after the swelling sea of cash inundating the system finally recedes. Those banking on a peaceful sunset to their careers may end up in for tempestuous final chapters instead.

BRICS Attempts to De-dollarize the Global Financial System?

The BRICS Nations (Brazil, China, India, China, and South Africa) tire of American hegemony and are seeking to establish their own currency to be used primarily in the energy trade.? And as the infographic above shows, they are expanding their membership to represent a growing segment of the global economy. Currently, countries must keep a reserve of US dollars to procure the oil and other fuels they need to power their economies.? If the BRICS countries successfully reduce their reliance on the US dollar, it could lead to a significant influx of dollars back into the US economy. For middle-class technical professionals, this scenario could have mixed implications:

• Inflation Risks: A large return of dollars could contribute to inflationary pressures in the US economy. This would impact purchasing power, making everyday expenses and potentially investments more costly.
• Market Volatility: Increased volatility in currency and stock markets might occur, affecting investment portfolios and retirement savings of middle-class professionals.
• Job Market Impact: Fluctuations in the economy could influence job stability and growth prospects in various sectors, including technology and engineering.
• Opportunity for Diversification: Such economic shifts might encourage technical professionals to diversify their investments and savings strategies, considering global economic trends more closely.

While there are potential risks, there is also opportunity for middle-class professionals to adapt and strategize their financial planning and career paths in response to global economic changes.

From Great Resignation to Great Regret

The so-called Great Resignation triggered an unintended Great Regret for many workers. When COVID-19 hit, employees reassessed work-life balance, with remote flexibility becoming highly coveted. Millions quit jobs that refused work-from-home, seeking greener grass. However, the stampede overwhelmed remote supply/demand dynamics. Myriad workers now vie for limited virtual roles while also missing office camaraderie. Simultaneously, employers cite productivity challenges with full-time remote staff. Retirees contemplating remote work to supplement income face flooded labor pools and stunted hiring demand. They now compete against swaths of junior workers all lobbying for the same flexible or hybrid opportunities. Ageism further stacks the deck. Hence, the same isolation and financial uncertainty that pushed employees to prioritize lifestyle over job stability now leaves them regretting knee-jerk career changes as expenses rise, recessions loom, and in-person community remains irreplaceable. For better or worse, the workplace may never be the same.

The Global Rise of Unhappiness

Gallup's coveted life satisfaction and dissatisfaction metrics reveal a sobering global truth - happiness is declining markedly. Their data aggregates worldwide surveys, quantifying wellbeing through a points-based system since 2006. Initially scoring a baseline unhappiness level of 24, this figure has grown sharply over the past fifteen years, hitting an alarming high of 33 in 2021 and continuing to rise. The reality is stark - even before COVID-19, people were growing more discontent annually. Experts attribute the descent to "wellbeing inequality" - a festering resentment between the haves and have-nots. As more feel left behind, victim mentalities and scarcity mindsets metastasize, fueling entitlement and restlessness. These trends manifest through symptoms like wokeness movements and wealth divisions but tracing back to deeply-rooted societal fractures. Per Gallup, tangible wellbeing divides underpin most societal ills, though politicians often target symptoms rather than the disease. If leaders truly want change, data suggests rebalancing wellbeing disparities could turn the tide on many modern troubles. Only by lifting up those left behind can the accelerating unhappiness curve truly flatten.

The Shrinking US Middle Class

The data paint an uneasy outlook for middle class retirees grounded in financial mediocrity. As the presentation demonstrates, while upper-class ranks swell, the middle class shrinks annually. Downward mobility accelerates when retirees stall planning and self-improvement, failing to leverage information abundance to safeguard quality lifestyle. Effectively, inaction ensures backsliding. Thus, the bold prediction takes shape - without proactivity, the middle class will progressively evaporate, dropping into lower income levels that entail sacrifices to healthcare, leisure travel, housing, and more. Conversely, middle-aged workers and seniors who refuse stagnation and relentlessly better themselves are most likely to enjoy retirement securely aligned with the upper class. In the information age, knowledge fuels opportunity. Hence continuous learning and improvement separate winners from losers in navigating retirement’s shifting landscape. Complacency leads to declining wellbeing, while intellectual curiosity and effort uphold quality of life. Given the trends, the choice is clear - if middle class workers and seniors want to avoid shrinking into regret and hardship, they must embrace growth mindsets and intentionally direct their futures.

Reasons for Optimism in a Time of Uncertainty?

Yet as daunting as this sounds, all is not lost. Every wave of technological advancement has stirred similar anxieties, from the Industrial Revolution to the dawn of computers. And while painful displacements have occurred, history shows that over time, new industries arise, jobs multiply in unexpected ways and standards of living dramatically improve across socioeconomic lines. There are already encouraging signs that AI will create more opportunity than it destroys for committed lifelong learners. The ubiquitous access to AI tools allows for more workers to be able to work remotely, from all areas of the globe, and without language barriers. Citizens of developing countries will be able to compete in the market with workers from first world countries. It’s those who refuse to adapt who are most at risk of being left behind.

From Impacted to Empowered:? How Mid-Career Pros Can Harness AI

The good news is, as mid-career experts in our fields, we have an advantage. We bring institutional knowledge, communication skills and emotional intelligence that AI lacks. But we must take proactive steps to remain valuable contributors in an AI augmented world. Here are 5 key strategies to avoid being replaced by AI and instead harness it as a partner:

• Become a Lifelong Learner to Avoid Becoming a Lifelong Loser Commit to continuously upleveling your skills. Resist the urge to rest on your laurels or academic credentials of the past. Especially seek out training at the intersection of your expertise and AI, such as machine learning for lawyers. Early adopters will have the edge.
• Lead with Your “Soft Skills” Double down on capabilities AI can’t easily replicate, like creativity, persuasion, leadership and ethics. Bring wise judgment and emotional intelligence to evaluating AI’s outputs and recognizing the nuances of interpersonal interactions.
• Become an AI Translator Learn enough about AI basics and tools to spot opportunities for smart integration. Position yourself as the visionary who can bridge between the engineers and end users. Think of ways to enhance stakeholders’ capabilities.
• Be a Lifelong Counselor Continually guide colleagues on the possibilities and perils of AI. Calm fears with empathy while challenging the inertia of low expectations. Seed a culture that reduces AI anxiety and increases AI fluency.
• Advocate for Inclusive AI Promote development of AI that reflects the full diversity of its potential users. Whether you have direct influence or can only raise awareness, ensure that AI avoids perpetuating unfair bias so its benefits uplift all.

By Charting Our Collective Course, We Can Master These Tides of Change

The winds of technological transformation are blowing, and none of us can reverse them. But by upgrading our skills, leading with our humanity and collectively shaping responsible policies, I believe we can harness AI to reopen pathways to upward mobility. If we combine smart government remedies, enlightened corporate policies and our own gritty determination, I have hope we can revive the middle class as a thriving pillar of society. We stand at a pivotal point in determining whether AI concentrates wealth and power or opens new possibilities to millions previously left out of tech’s bounty. I choose to see this time as a chance for reinvention on a societal scale. Who else is with me? How will you help steer AI to empower the many, rather than replace them? I welcome your perspectives in the comments.? I also welcome you to join The Career Change Community for Technical Professionals and Knowledge Workers.