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The emergence of advanced Artificial Intelligence (AI), particularly generative AI, has sparked a "great divide" in the global labor market. This divide is characterized by two opposing narratives: the "doomsayer" perspective, which foresees widespread job displacement, and the "optimist" view, which predicts human-AI augmentation, productivity booms, and net job creation. While macroeconomic data currently offers a muted signal, firm-level evidence and early labor market indicators suggest a more immediate disruption, especially for early-career white-collar workers. The traditional policy response of worker retraining is likely insufficient, necessitating more radical solutions such as reimagined social safety nets. The trajectory of AI's impact is not predetermined; it will be shaped by conscious choices aiming to foster human-complementary AI that augments capabilities rather than substitutes labor.