AI will primarily threaten purely cognitive jobs, but roles combining thought with physical dexterity—like master electricians or plumbers—will thrive. The AI-driven infrastructure boom is increasing demand and pushing their salaries above even those of some Silicon Valley engineers.

Contrary to long-held predictions, AI is disrupting high-status, cognitive professions like law and software engineering before manual labor jobs. This surprising reversal upends the perceived value of higher education and traditional career paths, as the jobs requiring expensive degrees are among the first to be threatened by automation.

AI is rapidly automating knowledge work, making white-collar jobs precarious. In contrast, physical trades requiring dexterity and on-site problem-solving (e.g., plumbing, painting) are much harder to automate. This will increase the value and demand for skilled blue-collar professionals.

The initial job creation from AI isn't just for software engineers. It's driving a massive boom in physical infrastructure like data centers and chip fabs, creating high demand for skilled trades like electricians, plumbers, and construction workers.

While AI may not cause mass unemployment, its greatest danger lies in automating the routine entry-level tasks that new workers rely on to build skills. This could disrupt traditional career ladders and create a long-term talent development crisis for organizations.

The explosion of AI requires a vast network of new data centers, creating unprecedented demand for electricians. This supply-demand imbalance will make skilled trades, previously undervalued, the financial winners of the next generation.

Most AI applications are designed to make white-collar work more productive or redundant (e.g., data collation). However, the most pressing labor shortages in advanced economies like the U.S. are in blue-collar fields like welding and electrical work, where current AI has little impact and is not being focused.

Contrary to popular belief, highly compensated cognitive work (lawyers, software engineers, financiers) is the most exposed to AI disruption. If a job can be done remotely with just a laptop, an advanced AI can likely operate in that same space. Physical jobs requiring robotics will be protected for longer due to cost and complexity.

The immediate threat of AI is to entry-level white-collar jobs, not senior roles. Senior staff can now use AI to perform the "grunt work" of research and drafting previously assigned to apprentices. This automates the traditional career ladder, making it harder for new talent to enter professions like law, finance, and consulting.