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Nearly a third of workers sabotage company AI—wage cuts, not layoffs, are the real threat

Nearly a third of workers sabotage company AI—wage cuts, not layoffs, are the real threat

Key takeaway

  • New research shows AI is cutting worker wages rather than eliminating jobs outright, with those in high-AI-exposure occupations experiencing real wage growth 6.7 percentage points slower than less-exposed workers after 2023.

  • The finding aligns with widespread worker sabotage—29% of employees admitted to actively resisting or undermining their company's AI adoption—driven by anxiety that machines will erode their pay even if their jobs remain intact.

  • This wage-compression effect, concentrated among lower earners, amounts to roughly $28 billion in annual labor income loss and explains why worker anxiety persists even as unemployment stays low.

3 Key Points

  1. What happened

    Research from Apollo Global Management found that workers in AI-exposed occupations are experiencing slower wage growth with no significant job losses, suggesting companies are capturing AI productivity gains through wage compression rather than workforce reduction. A separate survey found 29% of employees admitted to actively sabotaging their company's AI strategy, with rates jumping to 44% among Gen Z workers.

  2. Why it matters

    The wage squeeze is concentrated at the bottom of the income ladder—workers in the bottom wage quartile saw real wage growth slow by 10.7 percentage points relative to less-exposed occupations after 2023, amounting to roughly $28 billion in annual labor income loss across 5.8 million U.S. workers. This explains widespread worker anxiety and resistance: employees sense their paychecks shrinking even as economists debate whether jobs are being lost, making the threat harder to see but no less real.

  3. What to watch

    Apollo economist Torsten Slok's findings—based on actual Claude usage data from Anthropic rather than theoretical exposure scores—contradict his own predictions from earlier in 2026 that AI was creating more jobs than it destroyed. The data shows service occupations took the steepest hit (down 24.3%), while top earners saw no significant wage effect, widening inequality.

In Depth

Read the full story

In mid-July 2026, Apollo Global Management's chief economist Torsten Slok published a paper with co-author Sania Edlich that challenged his own earlier optimistic predictions about AI and employment. Just two months prior, on May 29, Slok had published a Daily Spark titled "Zero Evidence of AI-Related Job Losses," invoking the Jevons Paradox to argue that efficiency gains would expand demand and create net job growth. But when Slok and Edlich analyzed actual usage data from Anthropic's Economic Index—real Claude interaction logs showing what workers were genuinely doing with AI—they found something different: wage compression without significant job loss.

Their analysis spanned 321 occupations matched to Bureau of Labor Statistics data from 2015 to 2025. The key finding: workers in high-AI-exposure occupations experienced real wage growth that slowed by 6.7 percentage points relative to less-exposed workers after 2023, with no statistically significant employment effect. The pain was heavily concentrated at the bottom of the income ladder. Workers in the bottom wage quartile saw wages down 10.7% relative to low-exposure occupations; the second quartile down 5.4%; the third quartile down 4.0%; while the top quartile experienced no significant effect. Service occupations took the steepest hit at down 24.3%, though the authors cautioned this figure was based on a small subsample. Overall, approximately 5.8 million U.S. workers—about 3.7% of the labor force—sit in occupations exposed enough to feel this squeeze, amounting to a conservative $28 billion in annual labor income loss that the authors expect to keep climbing.

The finding arrived amid widespread worker anxiety and resistance. A June 2026 survey by Software Finder of 1,005 employed U.S. workers found that half described themselves as actively resisting new AI tools. Workers who resisted AI earned roughly 20% less on average than those who embraced it ($65,645 versus $81,526), though 45% cited fear of becoming replaceable as their reason for holding back, and only 16% believed their company was adopting AI for genuine business value rather than hype or competitive pressure. Resistance sometimes escalated into deliberate sabotage: an April 2026 survey of 2,400 knowledge workers across the U.S., U.K., and Europe by Writer and Workplace Intelligence found that 29% of employees admitted to actively sabotaging their company's AI strategy—a figure that jumped to 44% among Gen Z workers. The sabotage took concrete forms: entering proprietary company information into unapproved public AI tools, using unauthorized "shadow AI" systems, refusing to engage with company-mandated tools, tampering with performance reviews, and deliberately producing low-quality work to make AI look ineffective. Of the workers who admitted to sabotage, 30% cited fear that AI would take their job as their primary motivation. Additional findings showed that 13% of workers admitted to faking AI use—appearing to use a tool while doing the task manually—and only 6% believed their managers accurately understood how often employees actually used the tools their companies had rolled out.

Slok's paper contradicted analysis from Anthropic's own head of economics, who in late July published a lengthy essay on X drawing on 18 months of internal research. He concluded that the U.S. labor market had "not yet taken a visible hit from AI," pointing to a 4.2% unemployment rate (which the Federal Reserve considers full employment), with job openings roughly matching the number of unemployed workers and prime-age employment near multi-decade highs. Yet the two analyses need not contradict—they answer different questions with overlapping data. It is entirely possible for a labor market to show flat unemployment while wages quietly fall in relative terms. A comprehensive literature review cited by Reuters in July found that most datasets showed "little evidence of economy-wide job loss or wage decline," attributing AI's impact so far to "task reallocation and within-firm productivity gains, rather than mass displacement." This conclusion sits uneasily next to Slok's wage-compression findings, explaining why reasonable economists looking at adjacent data reach opposite-sounding conclusions.

Slok acknowledged his paper's limits—the exposure measure relies solely on Anthropic's data, and only 321 of roughly 800 BLS occupations could be matched—yet remained unambiguous about the stakes. He wrote: "The critical policy question is not whether AI will reshape the labor market more broadly, but how quickly, and whether workers will have the support they need when it does." The wage-compression pattern echoes historical technological disruption. Textile mechanization crushed wages for hand-loom weavers well before it created higher-paying factory jobs elsewhere, giving rise to the Luddite movement. More than a century later, industrial robotics in manufacturing during the 1980s and '90s coincided with decades of stagnant real wages for blue-collar workers even as productivity climbed steadily, originating the "Rust Belt." Financial Times analyst Joel Suss found that gains from new technology have not automatically flowed to the workers producing them since around 1970, as labor's share of GDP has fallen relative to capital's across the U.S., Japan, and most of Europe. "Insofar as advances in AI constitute capital-biased technological change," he argued, "the pay-productivity gulf will widen further." What emerges is a labor story that resists the clean narrative either side wants to tell: not the mass-layoffs scenario Anthropic CEO Dario Amodei has warned about, nor the all-clear that unemployment data suggests, but something quieter and more corrosive—a mechanism that shows up in paychecks rather than pink slips, indistinct enough that reasonable economists can reach opposite-sounding conclusions.

Context & Analysis

The emergence of wage compression as AI's primary labor-market impact marks a significant shift in how economists—and worker sentiment—view the technology's effects. Apollo economist Torsten Slok, who spent much of 2026 arguing that AI's macroeconomic impact was invisible and championing the Jevons Paradox (the theory that efficiency gains expand demand rather than shrink the workforce), reversed course in July after analyzing actual Claude usage data from Anthropic. Rather than relying on theoretical exposure scores, Slok and co-author Sania Edlich measured what workers were genuinely doing with AI and found that productivity gains were flowing to employers, not employees.

This finding resolves a key tension in the broader economic debate. While Anthropic's own head of economics points to a 4.2% unemployment rate and strong prime-age employment as evidence that AI hasn't harmed the labor market, Slok's wage-compression thesis shows that both positions can be true: unemployment can remain low while relative pay declines. The distinction matters enormously for worker anxiety. Employees sensing lower paychecks have good reason to resist or sabotage AI adoption—29% of workers admitted to deliberate sabotage in an April 2026 survey, with 30% citing fear of job loss as their motivation. The divergence between official labor statistics and take-home wages explains why reasonable economists looking at adjacent data can reach opposite-sounding conclusions, even as the underlying threat to worker prosperity remains real.

The wage compression pattern echoes long historical precedent: mechanized agriculture, industrial automation, and offshoring all lowered production costs and suppressed wages in affected occupations even as overall economic output expanded. The Financial Times documented that labor's share of GDP has fallen relative to capital's since around 1970 across the U.S., Japan, and most of Europe, suggesting AI is continuing rather than breaking from this trend. For policy makers, the critical question Slok identifies is not whether AI will reshape the labor market, but how quickly and whether workers will have support when it does.

FAQ

How much are workers' wages being cut by AI exposure?
Workers in high-AI-exposure occupations saw real wage growth slow by 6.7 percentage points relative to less-exposed workers after 2023. The impact is steepest at the bottom of the income ladder: the bottom wage quartile saw wages down 10.7% relative to low-exposure occupations, while the top quartile experienced no statistically significant effect.
What forms does worker sabotage take?
According to a survey of 2,400 knowledge workers, sabotage includes entering proprietary company information into unapproved public AI tools, using unauthorized 'shadow AI' systems, refusing to engage with company-mandated tools, tampering with performance reviews, and deliberately producing low-quality work to make AI look ineffective. The survey found 29% of employees admitted to actively sabotaging their company's AI strategy, rising to 44% among Gen Z workers.
Are jobs actually being lost?
No—Apollo's analysis across 321 occupations from 2015 to 2025 found no statistically significant employment effect in high-AI-exposure occupations. Employment levels remain unchanged while wages compress, meaning companies are capturing productivity gains through lower pay rather than layoffs.

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