This article focuses on how the Ceo of Block Jack Dorsey is planning on laying half off his employees. Block is a company that is focused on financial services like Cash App, After-pay, and Bitcoin. The reason Jack Dorsey is pushing the agenda to lay off 4,000 workers is because he wants to cut expenses on employees and but that money on the investment of capital for the company.
Jack says that most companies will follow in the upcoming year; he stated his company just wanted to start this layoff earlier rather than be pushed into it. But, economist says this is not the rise of AI taking jobs. Economist says that this is just what happen during periods of rapid expansion and retrenchment. Even though we are in a "slow hire, slow fire" environment it is said that the labor market is nothing worry about for the moment.
The article focuses on how with the invention of the ATM struck fear into the labor market for how this would replace the jobs of tellers. The thing is we still have tellers; we just have found how to implement new tasks for tellers to do. This is what most economist expect to happen with the influence of AI, there will be jobs getting taken away by AI but there will be an equal or greater amount of jobs created from the implantation of AI.
I think that this is very interesting. I think that AI is getting to a slower point of growth right now, as capital constraints are becoming real. All of this R&D being put into AI is very costly and companies are starting to run out of funding. This could transition into a period where companies begin to fix problems with current AI models that are out and begin to perfect those. I also find it interesting how in order to boost profits, these companies are deciding to lay off workers. They will raise revenue by cutting labor expenses, which can be seen as good and bad.
ReplyDeleteThat is a fair perspective. Layoffs like Dorsey's might feel like an AI takeover, but history shows that technology is more likely to change jobs than get rid of them. Like how ATMs replaced bank tellers, AI will probably change jobs and create new ones, but it won’t get rid of them completely.
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