Kartik Athreya writes on the New York Fed’s Liberty Street Economics blog that despite widespread anxiety about AI-driven job losses, businesses report very few AI-driven layoffs so far and are instead focusing on retraining and shifting hiring toward AI-relevant skills. He argues AI’s current labor-market effect is more about changing which tasks a job requires than eliminating jobs outright. Athreya cautions, however, that narrowly specialized workers remain vulnerable and that longer-term demand-side economic shifts from AI could prove more disruptive than the supply-side effects seen so far.
