February 24, 2026 Artificial intelligence’s impact on the labor market will depend on whether the technology automates or augments worker tasks. Early data on employment and wages in AI-affected industries suggest it may be doing both. The distinction between codified knowledge (for example, established information gleaned from textbooks) and tacit knowledge (understanding gained through experience) is important. If AI can replicate codified knowledge but not tacit knowledge, AI will automate jo...