Author : Luis Garicano, Jin Li , and Yanhui Wu
Companies must harness innovations in artificial intelligence to ensure narrowed gaps in productivity don’t undermine quality
Discussions of artificial intelligence (AI) often dwell on the disappearance of entry-level jobs. This focus misses a more consequential structural shift: AI does not merely remove the bottom rung; it compresses the career ladder into a single floor. By making baseline competence widely and quickly accessible, it narrows the gap between novices and veterans, eroding the traditional link between experience and excellence.
When a three-month hire can match a seasoned professional, skill-based hierarchies lose their logic. This “great compression” calls for a fundamental redesign of how institutions operate.
For many years, organisational hierarchies rested on the premise that experience begets expertise and superior performance. AI weakens that link, much as Henry Ford’s assembly line reduced the premium on master artisans a century ago.