TD Economics sees AI-induced ‘job apocalypse’ as unlikely despite concerns
TORONTO - A report from TD Economics indicates that concerns surrounding widespread job losses due to AI are likely unfounded, asserting that the labour market is more likely to experience gradual change rather than an "AI-induced job apocalypse." Economists Rannella Billy-Ochieng’ and Thomas Feltmate argue that for AI to cause large-scale displacement, it would need to autonomously perform tasks, be economically advantageous, and be rapidly adopted across companies.
They believe that achieving these conditions remains challenging for the technology and that while the specter of AI-driven job loss is a risk, it is not their primary concern. The report notes that there is little evidence of AI-related job disruptions in the economy, but visible effects are concentrated in industries more exposed to AI, such as data processing.
Should the worst-case scenario unfold, the economists predict a potential increase in the unemployment rate by 0.7 to 1.4 percentage points by the early 2030s.
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