NEW YORK: The transformative effects of artificial intelligence dominated discussions at the Reuters NEXT conference in New York, with panelists focusing on how it can elevate work – and job growth – sidestepping concerns about an AI bubble.
Artificial intelligence represents the biggest technological upheaval for the world economy since the advent of the Internet a quarter of a century ago. It has brought trillions of dollars in investment and staggering stock market gains, but also shortages of memory chips, regulatory scrutiny and rising fears of job displacement.
The numbers are striking. In the first half of 2025, AI-related capital spending contributed more to GDP growth than consumer spending, according to JP Morgan Asset Management. Investment consultancy Bespoke Investment Group recently estimated that around a third of the increase in global market capitalization since the introduction of AI assistant ChatGPT comes from 28 AI-related companies.
Business leaders at Reuters NEXT focused largely on how artificial intelligence would transform work, although some talked about the threat to jobs. “All (our clients) are focused on slowing headcount growth,” said May Habib, CEO and co-founder of AI startup Writer. “This has happened in the last couple of weeks. You close a client, you’re on the phone with the CEO to kick off the project, and it’s like, ‘Great, how fast can I bang 30% of my team?’
Fear of job upheaval
Fears of job displacement caused by the AI boom are supported by a report from the U.S. Federal Reserve, which notes data and studies that say artificial intelligence is already replacing entry-level positions and causing companies to trim hiring plans. A Reuters/Ipsos poll in August found 71% worried that artificial intelligence would “put too many people out of work permanently.”
In a more optimistic tone that became a theme of the Reuters NEXT conference, economist Joseph Lavorgna, an adviser to the US Treasury secretary, said the focus should be on how technology could enhance labor rather than replace it. “AI is an incredible tool that I think is complementary to the existing workforce,” he said. “We need policies that will encourage companies to invest, and artificial intelligence is a complement to that.”
Nevertheless, employment data is hard to ignore. Recent college graduates have seen a sharp rise in unemployment, with a current unemployment rate of 9.5% for those between 20 and 24 with a bachelor’s degree, according to the U.S. Department of Labor, compared to the national rate of 4.4%.
Joe Depa, EY head of innovation, compared the changes to previous technological upheavals such as the development of the Internet, but “the difference this time is that the disruption is faster.” Depa said “adaptability is the new job security,” with his biggest concern surrounding the middle management class.
Tracey Franklin, Moderna’s chief and digital technology officer, said what has changed is how companies are beginning to evaluate employment needs in tandem with technology needs, rather than separately.
“We’re bringing teams together and really looking at what their IT portfolio is, what’s their human capital strategy, how do we pull it together to meet their business goals. So we have these integrated conversations we didn’t have before,” she said.
Skepticism and concern
The Reuters/Ipsos poll also found that 61% were concerned about increased electricity use from data centers, which will only grow. Jeff Schultz, senior vice president of portfolio strategy at Cisco Systems, noted that the infrastructure to run AI and the necessary chips already consume a lot of power, and that network traffic needed for agent AI is much higher and more stable than sporadic demand from AI chatbots.
But the backlash is growing at the energy-hungry data center clusters that have contributed to rising utility prices. That’s evident in places like Virginia and Pennsylvania, even among supporters of President Donald Trump, who have championed AI development and are considering ways to limit regulations at the state level.
There was notable trepidation among speakers at Reuters NEXT from the media and creative industries over concerns that AI-generated content could replace the creative work of writers or actors.
“When it comes to talent, there’s a lot of controversy, whether it’s acting, whether it’s music, etc., and that’s where I think we really have to be very aggressive about protecting creative talent and making sure they’re not replaced,” said longtime media executive Shari Redstone.
Sarah Jessica Parker, the longtime star of the TV series “Sex and the City,” said she believes people still value the tactile human experience — citing the performance’s unpredictability and spontaneity.
“We are still – most of us – dependent on the human exchange,” Parker told Reuters editor-in-chief Alessandra Galloni. “Even in movies, even though I know there’s so much now that you can fix and make prettier or tighter or better, there’s still this human element when we’re talking about the movies we love … I’m not sure AI will be able to replicate that living nerve.”
