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The AI Displacement Index: How We Score Every Occupation

A transparent look at the methodology behind AIJobWatch's risk scores โ€” combining task automation potential, wage data, and labor market signals for 925 occupations.

Every occupation page on AIJobWatch carries a single number: the AI Displacement Index (ADI), a 0โ€“100 score that estimates how vulnerable a job is to AI-driven automation within the next decade. This article explains exactly how that score is calculated, what data feeds it, and where its limitations lie.

Why a Single Score?

Policymakers, career counselors, and workers need a comparable metric. Research papers bury estimates in appendices; we surface them. The ADI distills five dimensions into one actionable number.

The Five Pillars of ADI

PillarWeightSourceWhat It Measures
Task Automation Potential (TAP)35%O*NET task descriptions + GPT-4 capability mapping% of core tasks an LLM/AI system can perform at โ‰ฅ80% quality
Employer Adoption Signal (EAS)20%Job postings mentioning AI tools for the role, BLS JOLTSHow quickly employers are integrating AI into this role
Wage Pressure Index (WPI)15%BLS OES, Glassdoor salary trendsDownward wage pressure correlated with AI adoption
Historical Displacement Rate (HDR)15%BLS employment projections vs. actuals 2020-2025Already-observed headcount declines in the occupation
Barrier to Entry (BTE)15%Education requirements, licensing, physical presenceStructural moats that slow displacement

Step-by-Step Calculation

1. Task Automation Potential (TAP) โ€” 35%

We start with the O*NET database, which lists 15โ€“30 discrete tasks for each of 873 Standard Occupational Classification (SOC) codes. Each task is evaluated against current frontier AI capabilities:

  • Fully automatable (1.0): AI can perform the task end-to-end with minimal human oversight. Examples: data entry, basic translation, invoice processing.
  • Partially automatable (0.5): AI assists significantly but requires human judgment for completion. Examples: code review, medical image pre-screening.
  • Minimally automatable (0.1): AI provides marginal assistance at best. Examples: crisis negotiation, complex surgery, emotional counseling.

The TAP score = (ฮฃ task_weight ร— automation_score) / ฮฃ task_weight ร— 100. Tasks are weighted by time-spent data from O*NET.

2. Employer Adoption Signal (EAS) โ€” 20%

We analyze 2.4 million active U.S. job postings monthly, tracking:

  • Mentions of AI tools (ChatGPT, Copilot, Jasper, etc.) as required or preferred skills
  • Decline in postings for the pure role (e.g., "copywriter" without AI modifier)
  • Ratio shifts: one "AI-augmented" posting replacing multiple traditional postings

A fast-rising EAS indicates employers are already restructuring.

3. Wage Pressure Index (WPI) โ€” 15%

When AI enters a field, wages often stagnate or decline before headcount drops. We track:

  • Year-over-year real wage growth vs. the national median
  • Freelance rate compression on platforms (Upwork, Fiverr, Toptal)
  • Entry-level salary trends vs. mid-career

4. Historical Displacement Rate (HDR) โ€” 15%

The most objective pillar: actual BLS employment data. We compare 2020 employment levels to 2025 estimates, adjusted for sector growth and COVID recovery. Occupations already shrinking score higher.

5. Barrier to Entry (BTE) โ€” 15%

This pillar reduces the score. High barriers slow displacement even when technical automation is feasible:

BarrierReduction FactorExample
Professional license requiredโˆ’8 to โˆ’15 ptsPhysicians, attorneys, CPAs
Physical presence mandatoryโˆ’5 to โˆ’12 ptsElectricians, plumbers, nurses
Regulatory complianceโˆ’3 to โˆ’8 ptsFinancial advisors, pharmacists
Emotional/trust requirementsโˆ’2 to โˆ’6 ptsTherapists, social workers

Score Interpretation

ADI RangeLabelWhat It MeansExample Occupations
0โ€“20Low RiskAI augments but unlikely to displace within 10 yearsSurgeons, electricians, firefighters
21โ€“40ModerateSome tasks automated; role evolves significantlySoftware engineers, registered nurses
41โ€“60ElevatedSubstantial task automation; headcount reductions likelyParalegals, junior accountants, graphic designers
61โ€“80High RiskMajority of tasks automatable; rapid restructuring expectedData entry clerks, bookkeepers, translators
81โ€“100Very High RiskNear-total task automation feasible; role may cease to existTelemarketers, tax preparers, basic copywriters

Validation & Accuracy

We back-tested the ADI against actual employment changes from 2021โ€“2025:

  • 87% correlation between ADI scores assigned in 2022 and actual employment change direction by 2025
  • Top quintile accuracy: 92% of occupations scored 81โ€“100 experienced measurable headcount declines
  • Bottom quintile accuracy: 89% of occupations scored 0โ€“20 maintained or grew employment

Known Limitations

  • Regulatory lag: The ADI may overestimate displacement speed in heavily regulated industries (healthcare, finance) where adoption faces compliance hurdles.
  • New role creation: The index measures displacement of existing roles, not the creation of new ones. AI will create jobs โ€” but they won't be the same jobs.
  • Geographic variation: A national-level score may not reflect local labor markets. See our metro-level analysis.
  • Update frequency: Scores are recalculated quarterly. Rapid AI capability jumps (like a new model release) may temporarily outpace our updates.

How to Use the ADI

๐Ÿ‘ค Workers

Check your occupation's score. If it's above 60, explore our career pivot guide and transition planner.

๐Ÿ›๏ธ Policymakers

Use state and metro breakdowns to target retraining funding where displacement risk is concentrated.

๐ŸŽ“ Educators

Align curriculum with skills that score low on task automation potential. See skills AI can't replace.

Data Sources

  • U.S. Bureau of Labor Statistics โ€” Occupational Employment and Wage Statistics (OES)
  • O*NET OnLine โ€” Task and skill databases (v28.1)
  • BLS Job Openings and Labor Turnover Survey (JOLTS)
  • OpenAI, Anthropic, Google capability assessments (academic publications)
  • Lightcast (formerly Burning Glass) โ€” Real-time job posting analytics
  • Federal Reserve Economic Data (FRED)

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