What's Happening?
President Donald Trump has announced a new initiative aimed at retraining workers displaced by artificial intelligence. The plan, unveiled at the 'Winning The AI Race' forum in Washington, D.C., calls for the U.S. Department of Labor to utilize discretionary funds to finance training programs. These programs are intended to address workforce needs in priority AI infrastructure jobs. The initiative also encourages the Treasury Department to issue guidance that would allow AI literacy and skill development programs to qualify as eligible educational assistance under the Internal Revenue Code. This would enable employers to offer tax-free reimbursement for AI-related training, thereby promoting private-sector investment in AI skill development.
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Why It's Important?
The initiative is significant as it addresses the growing concern of job displacement due to automation and AI. According to a recent SHRM report, over 19 million roles, representing more than 12% of jobs in the U.S., are at high risk of displacement. The plan aims to mitigate these losses by upskilling workers, particularly in blue-collar, service, and white-collar administrative support occupations, which are deemed high-risk. By incentivizing employers to invest in AI skill development, the initiative seeks to preserve jobs and maintain workforce stability in the face of technological advancements.
What's Next?
The Department of Labor, under the leadership of Deputy Secretary Keith Sonderling, is expected to execute the directives as part of a 'worker-centric AI strategy.' The agency will collaborate with employers and other stakeholders to develop effective training programs. Additionally, the Treasury Department's guidance on educational assistance could lead to increased private-sector investment in AI training, further supporting the initiative's goals.
