I don’t remotely see the present generation of LLMs as being “labor replacing tools.” I’m aware of empirical work which shows them to be useful complements to human judgment, not substitutes for the same. I’m also aware of one study showing (iirc) less work for illustrators on an online job board. That latter case is the only case im aware of where workers have been replaced though if you have citations to actual empirical evidence for job losses please comment!
An alternative theory: Part of what AI CEO’s are doing is marketing their products. If you want to get investors and customers to pay your very expensive compute bill you’d better sell your product. You can sell your product by claiming it can replace workers. That doesn’t mean it can do it. If the current generation of LLMs can replace workers, that is not obvious.
Perhaps some future generation might be, but that will require something fundamentally different than what’s currently available. (And no I don’t think “more data” is enough.)