The Iceberg Index measures how much of the wage value inside each job AI can technically perform, rather than predicting job losses.

The MIT team developed the Iceberg Index by creating a digital representation of 151 million American workers across 923 occupations and 3,000 counties.

According to the MIT Iceberg Index study, AI can technically perform work accounting for approximately 2.2% of the total US labor market wage value, which is about $211 billion, within the tech sector.

Current economic systems, including GDP, unemployment figures, and wage data, are built around counting jobs and people, not analyzing tasks within jobs that AI can perform.

The presenter predicts that if the MIT Iceberg Index is not adopted, a two-speed economy will emerge, characterized by one half becoming dramatically more productive and the other half steadily less affordable.