NEW YORK, Dec 4 (Reuters) – The transformative effects of artificial intelligence dominated discussions at the Reuters NEXT conference in New York, as panelists focused on its potential to disrupt work and influence job growth while largely sidestepping concerns about an AI bubble.
Artificial intelligence represents the most significant technological upheaval since the rise of the internet, with implications that extend across the global economy. It has attracted trillions of dollars in investment and led to remarkable stock-market gains, but it has also resulted in a shortage of memory chips, increased regulatory scrutiny, and heightened anxiety regarding job displacement.
The impact of AI on economic metrics is striking. According to JP Morgan Asset Management, AI-related capital expenditures contributed more to GDP growth than consumer spending during the first half of 2025. Investment advisory Bespoke Investment Group estimated that approximately one-third of the increase in global market capitalization since the launch of AI assistant ChatGPT can be attributed to 28 AI-related companies.
During the conference, corporate executives primarily discussed how AI would transform work dynamics. Some, however, voiced concerns about its potential to threaten jobs. “All (of our customers) are focused on slowing headcount growth,” said May Habib, CEO and co-founder of AI startup Writer. “This has happened just in the last few weeks. You close a customer, you get on the phone with the CEO to kick off the project, and it’s like, Great, how soon can I whack 30% of my team?”
Fears about job displacement have been substantiated by a recent report from the U.S. Federal Reserve, which indicates that AI is already replacing entry-level positions and prompting companies to revise their hiring plans. An August poll conducted by Reuters/Ipsos revealed that 71% of respondents are concerned AI will lead to “putting too many people out of work permanently.”
Amidst these concerns, economist Joseph Lavorgna, counselor to the U.S. Treasury secretary, articulated a more optimistic perspective that surfaced as a recurring theme at the conference. He emphasized the importance of viewing AI as a technology that can enhance labor rather than replace it. “AI is an incredible tool that I think is complementary to the existing workforce,” he stated. “We need policies that are going to encourage businesses to invest, and AI is a complement to it.”
Despite this optimistic outlook, the current employment landscape remains challenging. Recent graduates are experiencing a notable rise in unemployment, with a jobless rate of 9.5% for those aged 20 to 24 holding a bachelor’s degree, according to the U.S. Labor Department. This rate is significantly higher than the national average of 4.4%.
The discussions at the Reuters NEXT conference underscore the complex duality of artificial intelligence: while it promises unprecedented advancements and efficiencies, it also presents significant challenges, particularly in the realm of employment. As the technology continues to evolve, the focus will likely shift toward developing policies that harness its benefits while mitigating its potential harms, ensuring that the workforce can adapt to this ongoing transformation.
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