November 27, 2025
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MIT’s Iceberg Index: Navigating AI’s Hidden Currents in the Labor Market

MIT and Oak Ridge National Laboratory have dropped a fascinating tool— the Iceberg Index—aimed at demystifying AI’s real impact on the sprawling U.S. workforce. We often hear about tech layoffs dominating headlines, but this index shines a light on a much larger, murkier underwater mass: routine jobs in finance, HR, logistics, even office admin, totaling up to $1.2 trillion in wage exposure, far beyond the visible 2.2% in tech roles.

What’s refreshing here is the proactive, granular approach—mapping skills, tasks, and occupations down to the zip code. For policymakers, this isn’t just scary doom-talk; it’s a sandbox that lets them simulate scenarios before sinking billions into reskilling programs or legislation. As we talk about AI’s spread beyond coastal hubs, this index highlights how inland and rural regions face their own AI waves—often overlooked in mainstream discourse.

The real charm? Treating millions of workers as individuals, accounting for local economies and sector-specific nuances. Tennessee’s early adoption of this model shows promise in balancing AI adoption with preserving essential jobs in healthcare and manufacturing through complementary technology like robotics and AI assistants.

So here’s the takeaway: AI isn’t a monolithic job killer lurking only in Silicon Valley—it’s a subtle, complex force reshaping work across America. Tools like the Iceberg Index help us be less reactive and more strategic—crafting policy with precision rather than a blunt hammer. As AI continues to evolve, it’s time we move from fear-based headlines to a pragmatic mindset: How do we ride this wave, not drown in it? Source: MIT study finds AI can already replace 11.7% of U.S. workforce

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