Block Laid Off 40% Of Staff<\/p>\n
Forecasts Of More AI Job Losses<\/p>\n
Unemployment Could Surge<\/p>\n
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE<\/a>.<\/p>\n In 2023, Goldman Sachs (NYSE: GS<\/a>) put out a report titled \u201cThe Potentially Large Effects of Artificial Intelligence on Economic Growth.\u201d The authors wrote, \u201cExtrapolating our estimates globally suggests that generative AI could expose the equivalent of 300mn full-time jobs to automation.\u201d The authors did say that AI could increase GDP growth and that labor productivity would rise. They added that new technology may create new jobs. It was, the authors reported, not possible to know if a boom would add a large number to the global workforce.<\/p>\n Although it will not apply to all industries, Block (NYSE: XYZ<\/a>) has just laid off 4,000 people, which was about 40% of its workforce. At the time of the announcement, CEO Jack Dorsey said, \u201cSomething has changed. We\u2019re already seeing that the intelligence tools we\u2019re creating and using, paired with smaller and flatter teams, are enabling a new way of working that fundamentally changes what it means to build and run a company. and that\u2019s accelerating rapidly.\u201d As an affirmation of his decision, Block\u2019s stock rose 20%.<\/p>\n Does the Block move mean that other industries can make similar cuts? Few people will say for sure. A survey by the Harvard Business Review found that \u201cOverall, however, 90% of the survey respondents said that their organizations are getting either moderate or a great deal of value from AI.\u201d The survey was done at the end of last year and was based on answers from 1,006 global executives.<\/p>\n Opinions about the effects of AI on jobs vary widely. Dario Amodei, CEO of Anthropic, told Axios, \u201cAI could wipe out half of all entry-level white-collar jobs \u2014 and spike unemployment to 10-20% in the next one to five years.\u201d Taking into account the size of the US workforce and the current unemployment rate of 4%, that is between 10 million and 27 million jobs.<\/p>\n Where does the loss of jobs come from? Generally, the areas of business identified are white-collar jobs, entry-level jobs that involve data analysis, factory jobs that can be done by AI-powered robots, and a large number of retail jobs at stores and fast-food chains. The New York Times recently wrote that \u201cExecutives told Amazon\u2019s (NASDAQ: AMZN<\/a>) board last year that they hoped robotic automation would allow the company to continue to avoid adding to its U.S. workforce in the coming years, even though they expect to sell twice as many products by 2033. That would translate to more than 600,000 people whom Amazon didn\u2019t need to hire.\u201d Of course, that is not primarily layoffs. They are jobs that in the past would have been done by people.<\/p>\n How many jobs could be lost to AI? If the Block decision were applied to the S&P 500, which employs 29 million people, a 40% layoff would be 12 million jobs.<\/p>\n Kristalina Georgieva, managing director at the International Monetary Fund, recently told a group at the World Economic Forum that \u201cWe see potential to up of 0.8% boost to 0.8% over the next few years, but it is hitting the labor market like a tsunami, and most countries and most businesses are not prepared for it.\u201d<\/p>\n Wall Street is pouring billions into AI, but most investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buy back in 2010 \u2014 before its 28,000% run \u2014 has just pinpointed 10 new AI companies he believes could deliver outsized returns from here. One dominates a $100 billion equipment market. Another is solving the single biggest bottleneck holding back AI data centers. A third is a pure-play on an optical networking market set to quadruple. Most investors haven’t heard of half these names. Get the free list of all 10 stocks here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Block Laid Off 40% Of Staff Forecasts Of More AI Job Losses Unemployment Could Surge The analyst who…\n","protected":false},"author":2,"featured_media":494742,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,98021,28222,134,4321,74,226415],"class_list":{"0":"post-494741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-global-workforce","12":"tag-goldman-sachs","13":"tag-jobs","14":"tag-nvidia","15":"tag-technology","16":"tag-top-10-ai-stocks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/494741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=494741"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/494741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/494742"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=494741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=494741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=494741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}