"Don't get distracted by record stock prices. (The S&P 500, Dow and Nasdaq all hit new highs yesterday for the third session running.) The surging companies are all benefiting from AI for a simple reason: Companies expect more powerful AI, more productivity, greater profits and fewer workers. The market can easily surge even if joblessness spikes. So listen closely when companies announce big plans for smaller workforces."
"Almost every company is planning to slow hiring in the short term, and operate with much smaller human workforces in the future. Yes, new technologies usually result in a net increase in labor and wealth over time. But the transition is often painful. That's why Anthropic CEO Dario Amodei told us that LLMs, like his Claude, could wipe out half of all entry-level white-collar jobs. Ford CEO Jim Farley warned this summer that AI will replace "literally half" of white-collar jobs."
CEOs are planning to slow hiring in the short term and operate with much smaller human workforces in the future. New technologies typically increase labor and wealth over time, but the transition causes pain and job displacement. Company leaders warn that large language models and AI could eliminate a substantial share of white-collar entry-level positions. Markets rally as firms expect greater productivity, profits, and reduced headcounts. Firms are recruiting specialists to train AI to perform human analysis. Short-term effects include fewer jobs. Workers face heightened risk and need to assess job-specific vulnerability using available risk reports.
Read at Axios
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