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AI labour displacement danger minimal in short term: Bridgewater
Bridgewater Associates says the risk of AI-induced mass layoffs will stay low this year, as limits on computer power and a robust economy will dampen the technology’s near-term impact on employment.
The research report gives some more details:
Adoption remains restricted, with less than 20% of U.S. companies reporting AI use in any business function in a two-week span, mostly in information, technology and professional services, Bridgewater said using Census Bureau data.
The survey said more than 90% of companies adopting AI reported no impact to employment during the preceding six months, while more said they increased than decreased headcount in those that were impacted.
Bridgewater highlighted two dangers to that prediction in the near term: an escalation of the Iran conflict and cost pressures from corporations’ AI capital investments.
Even if the labor market remains subdued, Bridgewater cautions that without the help of AI to cool the economy, the Federal Reserve may struggle to manage inflationary pressures in a tight labor market.