The Week in Markets: Tangible evidence of AI’s role in workforce reductions

The University of Michigan’s November consumer sentiment survey, and October private sector job cuts tracked by outplacement firm Challenger, Gray & Christmas, have raised concerns the US economy may be entering a recession. But data from ADP, state-level initial jobless claims, and the Chicago Fed’s unemployment estimate, all paint a picture of a healthy economy. A closer look at the Challenger data, however, suggests the reason for job cuts is Artificial Intelligence. While AI might be able to displace humans in technology companies, it is unlikely to replace workers in many other sectors anytime soon. Still, it is clear labour is a primary worry in the market.