You are comparing company valuations to annualized revenue (as approximated by some fraction of total knowledge worker compensation). Valuations are (roughly) based on the sum of all discounted future cash flows, not just the current year’s revenue.

It does not have to be 16% of all jobs, but 16% of any given job, i.e. AI stays in an augmentative role rather than a complete job automation. The simplistic analysis is if a tool makes you X% faster, that can be worth X% of your salary to your employer.

Unfortunately, I do fear that AI adoption will go beyond augmentation to automation, and I do fear an economic shock. Just posted this down-thread: https://news.ycombinator.com/item?id=49722616