AI Boom Drives Innovation, Sparks Deepening Job Market Concerns
Artificial intelligence continues to redefine the landscape of work, innovation, and economic growth, as discussed at the Reuters NEXT conference in New York. Business leaders, economists, and technology experts debated the wide-ranging impacts of AI on productivity, employment, and social dynamics, with excitement over its potential tempered by warnings of workforce disruption.
AI has been described as the most transformative technological force since the rise of the internet, bringing with it a surge of investment and economic activity. In the first half of 2025, AI-related capital expenditure outpaced consumer spending as a driver of GDP growth, according to JP Morgan Asset Management. Investment firm Bespoke estimated that roughly one-third of global market capitalization growth since ChatGPT’s debut came from 28 AI-focused firms.
While many corporate leaders emphasized AI’s ability to enhance productivity, some acknowledged a growing appetite for cost-cutting. May Habib, CEO of enterprise AI platform Writer, revealed that clients are increasingly looking to reduce staff as they implement AI tools. “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 percent of my team?’” she said.
These sentiments reflect broader trends. A recent U.S. Federal Reserve report highlighted that AI is already displacing entry-level jobs. A Reuters/Ipsos poll from August found that 71 percent of Americans were concerned AI would permanently eliminate too many jobs. Employment figures for recent college graduates underscore the concern, with a 9.5 percent unemployment rate for Americans aged 20 to 24 with bachelor’s degrees, more than double the national average.
Despite these figures, some experts remain optimistic. Joseph Lavorgna, economic adviser to the U.S. Treasury Secretary, argued that AI should be viewed as a complement to the workforce, not a threat. “We need policies that are going to encourage businesses to invest, and AI is a complement to it,” he said.
Joe Depa, Chief Innovation Officer at EY, compared the moment to the rise of the internet, noting that the disruption is occurring faster than before. “Adaptability is the new job security,” he said, with particular concern for mid-level management roles. Tracey Franklin, Chief People and Digital Technology Officer at Moderna, explained that companies are beginning to rethink human capital planning in alignment with tech strategy, combining IT and talent assessments to better meet business goals.
Beyond the labor market, AI’s energy demands are becoming an emerging challenge. Jeff Schultz, Senior VP of Strategy at Cisco, noted the intense infrastructure and energy required for agent-based AI models. Rising utility prices in areas hosting large data center clusters have sparked backlash, even among those supportive of AI development.
The conference also highlighted rising anxiety in creative industries. Media executive Shari Redstone warned that AI-generated content could threaten the livelihoods of artists, musicians, and writers. Actress Sarah Jessica Parker emphasized the enduring value of human connection in performance. “There’s still this human element when we talk about the movies we love,” she said. “I’m not sure that AI will be able to replicate that live nerve.”
As AI continues to evolve, the duality of its promise and its disruption remains central to the debate. The conversation has shifted from speculative concern to immediate economic, ethical, and social considerations that policymakers, companies, and communities must now address.
