Cheaper AI could create more jobs, not fewer: Apollo’s chief economist Torsten Sløk- What he means
Fears that AI could trigger a wave of job losses may be exaggerated, according to Torsten Sløk, chief economist at Apollo Global Management. Current labor market data shows little sign of AI-driven job disruption, despite a growing number of companies citing technology when announcing layoffs, he said in a blog post on Friday.
Accordingly Business ContentSløk pointed to employment data from payroll processor ADP and argued that concerns about widespread unemployment caused by artificial intelligence are not yet reflected in the numbers. “There is zero evidence of job loss due to AI,” he wrote in a blog posted on Apollo.com.
He argued that rather than replacing workers currently, AI is creating new demand for specialized talent. “Many companies are hiring AI application specialists, and the establishment of the data center puts upward pressure on the salaries of AI specialists and the prices of semiconductors, equipment and energy,” Sløk said. he wrote.
The economist said the increase in AI-related spending is supporting both employment and inflation as businesses race to expand computing capacity and related infrastructure. According to Apollo.com, the current trend reflects the Jevons paradox, the idea that improvements in efficiency can ultimately increase demand rather than reduce it. Sløk summarized this phenomenon as follows: “Jevons’ paradox plays out in real time: cheaper technology creates more demand and more jobs.”
The comments add to a growing debate among economists, managers and investors about whether artificial intelligence will ultimately create more jobs than it destroys. Business Content The report noted that Sløk has consistently argued that lower costs enabled by artificial intelligence could expand markets and create new employment opportunities, as previous technological revolutions have done.
Layoffs continue to cloud the picture
The optimistic assessment comes at a time when many large companies are linking workforce reductions to AI-driven productivity gains. Accordingly Business ContentCompanies like Cisco and IBM have cited artificial intelligence when discussing layoffs or restructuring efforts, raising concerns that automation could eventually replace large numbers of white-collar workers, Block said.
But some prominent tech leaders dispute the idea that AI is already causing widespread unemployment. Reuters reported last week that OpenAI chief executive Sam Altman said AI was unlikely to result in a “jobs apocalypse” despite growing fears about the technology’s impact on employment.
A. Reuters In the report, Altman said OpenAI was “quite wrong” about some of the social consequences of AI adoption, even though its predictions about technological progress have proven largely accurate. Altman said it is still difficult to replace the “human part” of many jobs, helping explain why the feared wave of displacement has not yet materialized, the report said.
The debate is far from resolved. While some economists and business leaders believe AI will boost productivity and create entirely new categories of employment, others warn that it could take years for labor market disruption to show up in official statistics. A recently published article adds another dimension to the debate. arXiv It found that employment challenges in AI-exposed occupations may have begun before the launch of ChatGPT, suggesting that broader structural forces may be shaping hiring trends.
But for now, Sløk argues that the evidence does not support predictions of an AI-driven jobs crisis. Instead, as he argues in his blog post, the AI boom is creating demand for new skills, infrastructure and sectoral developments that, at least so far, appear to support rather than undermine employment.
