Artificial Intelligence’s Impact Dominates Discourse at Reuters NEXT Conference
NEW YORK, Dec 4 (Reuters) – Discussions at the Reuters NEXT conference in New York were heavily influenced by the profound implications of artificial intelligence, particularly regarding its potential to transform labor markets and employment growth, while largely bypassing anxieties concerning an impending AI bubble.
Artificial intelligence signifies the most monumental technological disruption to the global economy since the advent of the internet approximately 25 years ago.
This development has catalyzed trillions of dollars in investment and staggering stock-market escalations; however, it has simultaneously led to a surging demand for memory chips, regulatory scrutiny, and mounting trepidation regarding job displacement.
The statistics are striking. According to JP Morgan Asset Management, AI-related capital expenditures in the first half of 2025 are projected to make a greater contribution to GDP growth than consumer spending.
Investment advisory firm Bespoke Investment Group recently posited that around one-third of the global market capitalization increase following the debut of AI assistant ChatGPT can be attributed to 28 AI-focused companies.
At the Reuters NEXT gathering, corporate leaders primarily deliberated on the transformative potential of AI in the workplace, although some expressed concerns about its implications for employment.
“All of our clients are intent on decelerating headcount growth,” stated May Habib, CEO and co-founder of AI startup Writer.
“This trend has emerged quite suddenly—when a deal closes, you find yourself on a call with the CEO to initiate a project, only to hear, ‘Excellent, how soon can I reduce my team by 30%?'”
Concerns about Job Displacement
Fears regarding job displacement stemming from the AI revolution find corroboration in a U.S. Federal Reserve report that cites data and studies indicating AI’s current capability to supplant entry-level roles, leading companies to revise their hiring intentions.
An August Reuters/Ipsos survey revealed that 71% of respondents expressed concerns over AI potentially eliminating permanent employment opportunities for many individuals.
Yet, amid these fears, economist Joseph Lavorgna, a counselor to the U.S. Treasury secretary, adopted a more optimistic perspective—a sentiment echoed throughout the Reuters NEXT conference.
He emphasized the necessity to perceive technology as augmentative rather than replacement-based. “AI is an extraordinary tool that I believe complements the existing workforce,” he remarked. “We require policies that incentivize businesses to invest; AI serves as an adjunct to this initiative.”
Despite these assertions, the workforce statistics are alarming. Recent graduates are experiencing a notable spike in unemployment, with individuals aged 20 to 24 holding a bachelor’s degree facing a jobless rate of 9.5%—in stark contrast to the national average of 4.4%, as reported by the U.S. Labor Department.
Joe Depa, EY’s chief innovation officer, likened the current technological transition to past upheavals like the internet’s emergence, noting, “The distinction now lies in the velocity of disruption.”
He posited that “adaptability represents the new job security,” with particular apprehension surrounding the fate of middle management roles.
Tracey Franklin, Chief People and Digital Technology Officer at Moderna, highlighted a significant shift in how organizations are evaluating their employment requirements in conjunction with technological capabilities.
“We are amalgamating teams and critically assessing their IT portfolios alongside human capital strategies to align with business objectives,” she remarked.
Skepticism and Concerns
The Reuters/Ipsos poll also revealed that 61% of respondents are apprehensive about the increased energy consumption associated with data centers—a trend expected to intensify.
Jeff Schultz, Senior Vice President of Portfolio Strategy at Cisco Systems, noted that the infrastructure necessary for AI and its accompanying chips already demands substantial power, with network traffic for high-functioning AI being consistently higher compared to the sporadic demands of AI chatbots.
Growing opposition has emerged concerning the energy-intensive data center clusters that have contributed to escalating utility costs, particularly in states like Virginia and Pennsylvania, even among constituents of President Donald Trump, who has championed AI development while considering potential state-level regulatory constraints.
Concerns were palpable among speakers at Reuters NEXT from the media and creative sectors, regarding the probability that AI-generated content could supplant the creative outputs of writers and performers.
“In the realm of talent, there is significant contention about whether it pertains to acting, music, etc. We must be particularly vigilant in safeguarding creative talent to ensure they are not eclipsed,” cautioned veteran media executive Shari Redstone.
Sarah Jessica Parker, the iconic star of the television series “Sex and the City,” echoed sentiments about the enduring value of the human experience, citing the unpredictability inherent in live performances.
“Most of us still rely on the human exchange,” Parker conveyed to Reuters editor-in-chief Alessandra Galloni.
“Even in film, despite the myriad enhancements possible through technology, there remains an irreplaceable human element when discussing the movies we cherish… I’m doubtful that AI could replicate that live essence.”
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