Companies Aren't Replacing You With AI. They're Firing You to Pay for It.
The real reason behind all those tech layoffs isn't that robots took your job. It's that your salary is funding a $2.5 trillion spending spree.
Here's a stat that should make you do a double-take: companies around the world are expected to spend $2.5 trillion on AI this year. That's trillion with a T.
So where is all that money coming from? According to a new analysis from Fortune, a big chunk of it is coming from layoffs. Not because AI replaced those workers, but because companies need the cash to buy AI tools, build AI infrastructure, and hire AI specialists.
"AI's not replacing jobs, but job cuts are funding AI expenditures," says Brad Conger, chief investment officer at Hirtle Callaghan.
Block CEO Jack Dorsey (yes, the Twitter guy) has already publicly cited AI as a reason for cutting staff. And he's not alone. Across Silicon Valley and beyond, companies are essentially firing humans today to bet on robots tomorrow.
Meanwhile, the U.S. unemployment rate has crept up to 4.4%, and the real picture is worse. That number doesn't count people who gave up looking for work or are stuck in jobs way below their skill level. When you include those folks, the number jumps to 7.9%.
The stock market is volatile, fears of 1970s-style stagflation are growing, and we're in the middle of a geopolitical crisis. But the AI spending machine keeps rolling.
As reported by Fortune.
Source: Fortune
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