The current conjecture, one with which the Federal Reserve concurs, is that some entry-level positions may look vulnerable in the coming years, and firms are likely to use AI as a reason to ask more from smaller teams. But the evidence in cases of mass layoffs points strongly to different conclusions from the statements made by corporate leaders.
The technology sector is investing massively in data centres, graphics processors, custom chips, and even power sources, thanks to what it paints as a massive, unfulfilled demand for AI. When companies stretch to finance the sort of spending required for AI build-outs (with many big players in the AI sector raising extra funds on credit), labour becomes the most immediately-adjustable cost. While workers are told that AI made them obsolete, the more immediate cause is management choosing to expand its infrastructure commitments to hedge a future bet.