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There’s a great debate underway…
Will Artificial Intelligence spark massive productivity gains and create new jobs?
Or will this technology destroy millions of American jobs?
There are some early warning signs that jobs are at risk.
Over one-thousand tech stocks fired a total of 262,682 employees last year.
This included major layoffs at some of the biggest tech companies:
- Microsoft = 11,000
- Google = 12,000
- Meta Platforms = 21,000
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2023 was a year “get fit” in terms of financial performance.
That meant reducing expenses by firing employees.
The goal was to simply increase profits. And it seems to be working – with earnings expected to grow by more than 10% this year.
Artificial Intelligence seems to be playing a big role in these layoffs.
One recent study found that AI tools can increase productivity of customer service agents by 14%… business professionals by 59%… and programmers by 126%.
These are huge productivity gains.
Businesses are taking notice…
One recent business survey from ResumeBuilder found that…
- 37% report that AI replaced workers in 2023
- 44% expect layoffs in 2024 due to AI
There are three key takeaways…
1. AI tools are relatively inexpensive.
ChatGPT Plus is $20 per month. Microsoft Copilot is also $20 per month. And dozens of other tools are available for less than $100 per month.
A typical business might spent $200 – $300 per month on AI tools for an employee.
That’s chump change compared with an average U.S. salary of $59,000.
2. Most businesses will need fewer workers.
Let’s say the average employee can be 30% more productive by using AI tools.
That means a company can get the same amount of work completed – with 30% fewer employees.
Companies that are growing rapidly would be the exception. Instead of reducing headcount – they’ll simply grow a bigger business without new hires.
3. Tech layoffs are the canary in the coalmine.
The tech sector is very familiar with Artificial Intelligence.
It’s these companies that are building this tech – and making it available to the entire world. So, it makes sense that they would be the first to aggressively use AI tools.
Companies like Amazon cut 9% of employees. And Meta Platforms reduced their headcount by 25%.
It’s likely that non-tech business will do the same.
Tomorrow, I’ll share the counter argument. And I’ll explain the bullish case for jobs growth and prosperity thanks to AI.
What do you think?
Will AI destroy jobs? Or will it create new jobs and economic growth?
Please reply to share your thoughts. I’d love to hear your opinion.
AI is here today – and it’s transforming the economy.
It’s an unstoppable technology trend. And that’s why it’s critical that you buy the best AI stocks for huge profits.
Go here to get my free report:
The Top 5 Artificial Intelligence Stocks for 2024
Let’s make some big wins this year. I’m rooting for you!