December 4 2025

 At the Reuters NEXT conference in New York, executives and policymakers debated how artificial intelligence is reshaping the global economy. AI spending now contributes more to GDP growth than consumer spending, and companies are investing trillions of dollars. Yet 71% of people worry that AI will permanently destroy jobs, and executives admit they are slowing headcount growth even as they implement AI. Some leaders urge policies that encourage complementary AI investment rather than displacement. AI can amplify productivity, but adaptation and workforce planning are critical.

Full Article:
In the mid‑1990s the internet upended business models, created fortunes and rendered some companies obsolete. Today, artificial intelligence is stirring the same mix of excitement and dread. At Reuters NEXT, a global conference that draws leaders from technology, finance and policy, the conversation centered on AI’s dual impact: boosting productivity while raising fears of job loss and energy consumption. According to analysts at JP Morgan Asset Management, AI‑related capital expenditures contributed more to U.S. economic growth in the first half of 2025 than consumer spending. Bespoke Investment Group estimates that roughly one‑third of the surge in global market capitalization since ChatGPT’s debut comes from 28 AI‑related companies. Investors have poured billions into data centers and training models, and the promise of AI‑driven productivity gains has pushed stocks to new highs.

Yet beneath the buoyant numbers lies growing unease. Executives speaking on stage confessed that their clients are already using AI to justify headcount reductions. May Habib, CEO of enterprise AI startup Writer, said that after signing contracts, she often hears customers ask, “Great, how soon can I whack 30% of my team?”. SAP CEO Christian Klein reported that employees are demanding answers about how AI will affect their jobs. A U.S. Federal Reserve report cited at the conference warned that AI is already replacing entry‑level positions and causing companies to trim hiring. A Reuters/Ipsos poll found that 71% of respondents fear AI will permanently eliminate too many jobs. The data also show that recent college graduates face a 9.5% unemployment rate—more than double the national average.

The tension isn’t new: every technological revolution displaces some jobs while creating others. What’s different about AI is the speed and breadth of the disruption. Joe Depa, chief innovation officer at Ernst & Young, compared the moment to the internet’s rise but noted that the pace is faster. Tracey Franklin, Moderna’s chief people officer, said companies now plan their staffing and technology together, a sign that AI is no longer an add‑on but a core business strategy. Meanwhile, energy executives worry about the electricity demands of AI data centers. Cisco’s Jeff Schultz pointed out that network traffic for AI inference runs steadily high, unlike the sporadic bursts of a chatbot. As data centers proliferate, communities in Virginia and Pennsylvania are pushing back against rising utility bills.

Not everyone is pessimistic. Joseph Lavorgna, counselor to the U.S. Treasury secretary, argued that AI should be seen as a tool that complements workers rather than replaces them. He and other optimists believe AI can free humans from repetitive tasks and enable new forms of creativity. But even supporters acknowledge that the transition requires thoughtful policies, such as retraining programs, tax incentives for job‑creating AI applications and investments in education, to ensure that gains are widely shared. Shari Redstone, chair of media company Paramount Global, urged regulators to protect creative talent from being eclipsed by generative models. Actress Sarah Jessica Parker emphasized the irreplaceable value of human performance.

The discussion offers both caution and opportunity. On one hand, the huge capital flowing into AI means there is room for startups that enhance productivity, automate tasks and improve energy efficiency. On the other, investors and customers are scrutinizing the societal impact of these technologies. Companies that position AI as a complement to human workers, augmenting skills, expanding access and enabling new business models, may find more receptive markets than those that simply promise job cuts. Startups addressing AI’s energy footprint, such as developing more efficient chips or cooling systems, could tap into a growing concern highlighted at the conference. Finally, with regulators watching AI’s effects on labor and creative industries, businesses that build ethical frameworks and transparent communication into their products will likely avoid backlash.

As we enter 2026, AI shows no signs of slowing down. Its influence on GDP, stock markets and corporate strategy is undeniable. Yet history teaches us that technology’s benefits are not automatic; they depend on how we shape the tools and policies around them. The Reuters NEXT conversations underscore a pivotal moment: either AI becomes a force for widespread prosperity or it accelerates inequality and unrest. Future billionaires will be those who harness AI’s power responsibly, leveraging it to uplift workers, create new markets and ensure that the human element remains at the heart of innovation.

Subscribe to our newsletter to stay up to date with the latest breakthroughs in AI, Business, Technology, and Mindset.