Erosion does not mean redundancy (well, not initially, anyway).
Erosion means AI steadily absorbing the tasks that currently justify someone’s paid contribution. (That is, unless that person grows new value streams at a faster rate)
This erosion is already underway:
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AI removes administrative, analytical, and coordination effort across almost every knowledge role.
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Efficiency gains drive price competition, reduce margins, and create pressure on labour budgets.
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Many organisations are already using AI as a substitute for entry-level recruitment, tightening the labour market for Gen Z.
[Open AI graph of value-add]
The risk is not a sudden loss of jobs. The risk is that the commercial justification for human labour is gradually, but steadily, eroded. And while that justification may not come under scrutiny during this AI honeymoon period, that will not remain the case when there is an economic downturn, and the net value of a team of 10 is 50% of what it once was.
Understanding this erosion clearly is the first step in avoiding it.