Apollo Economist Says May Jobs Data Eases AI Displacement Fears

Torsten Slok, chief economist at Apollo Global Management, said May 2024 job growth figures alleviate fears that artificial intelligence will cause large-scale job loss ^[1].

This assessment addresses a growing economic concern that generative AI could rapidly displace human workers across multiple sectors. If employment remains robust despite the integration of AI, it suggests the technology may be augmenting labor rather than replacing it entirely.

Speaking on CNBC Television’s program “Closing Bell Overtime” in New York, Slok said that the employment data from May 2024 showed strong job creation [1, 2]. This trend counters the prevailing narrative that AI is currently driving a wave of widespread unemployment.

The May reports indicated that the U.S. economy continued to add positions at a pace that contradicts the theory of immediate, mass displacement [1, 2]. Slok said that these figures effectively put to bed the immediate fear that AI is causing a systemic collapse in the labor market.

While the long-term impact of automation remains a subject of debate among economists, the short-term data provides a buffer against the most pessimistic projections. The ability of the labor market to absorb new technologies while maintaining growth is a key indicator of economic resilience.

Slok's analysis relies on the specific employment figures released following the May 2024 period [1, 2]. By comparing these numbers to the predicted losses associated with AI adoption, he said that the actual impact on total employment has been minimal thus far.