
Two of the biggest trends today are AI powered process improvements AND mass layoffs. These two trends are inherently at odds with each other:
“If every business automates away workers to save money, then who will purchase their goods and services when those workers no longer have a job and income to spend in the economy?”
“AI Layoff Trap” — Every company automates like crazy because it makes sense for their bottom line. Taken together, they destroy purchasing power and aggregate demand. Bad for growth.
Technology revolutions tend to increase the size of the pie…. but is AI different? Will productivity outpace demand destruction or are we headed there anyway?
We’re in the middle of the shift. Don’t know about you, but I don’t have a book on how to handle it.
Thoughts? Policy? Business strategy? Something else?
#AI #FutureOfWork #AutomationParadox
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