S3E9: Automation, Adaptation, and Employment: Economist Kyle Herkenhoff on AI’s Labor Market Impact

Artificial intelligence is advancing faster than most policymakers — and many workers — can keep up. In this episode of Heller-Hurwicz Office Hours, economist Kyle Herkenhoff joins us to break down what rapid AI adoption means for productivity, job displacement, wages, and the structure of the U.S. labor market.We explore whether today’s AI wave resembles the gradual diffusion of computers — or a deeper, structural transformation more akin to the shift from horses to cars. Herkenhoff discusses his recent research, how AI may reshape worker skill demand, and what these trends could mean for innovation, inequality, and long-term economic growth.