Artificial intelligence has become the world’s fastest-moving technological shift since the internet era, drawing trillions in investment and driving corporate restructuring. At the Reuters NEXT conference in New York, business leaders and policymakers focused on AI’s transformative power while acknowledging rising fears over job losses, over-reliance on data centers, and the pace of disruption.
Why It Matters
AI is no longer a future threat it is actively reshaping employment, productivity and economic growth. Companies are adopting AI to streamline costs, often at the expense of hiring. Public concern is intensifying, with majorities fearing permanent job displacement and higher energy bills from power-intensive data centers. The rapid adoption rate means the economic and social impacts are unfolding faster than in previous tech waves.
Companies and Executives: Firms across industries are rolling out AI to cut headcount, merge tech and HR functions, and accelerate workflows.
Workers and Graduates: Entry-level roles, middle managers, and creative professionals face the highest displacement risks. Recent graduates already see nearly double the national unemployment rate.
Policymakers: Regulators are under pressure to manage AI’s effects on jobs, infrastructure, and electricity demand, while responding to local backlash against data centers.
Investors: Capital is flowing heavily into AI chips, software and infrastructure, raising questions about sustainability.
What’s Next
AI-driven restructuring is expected to continue, forcing companies to redesign roles and reduce hiring. Policymakers may tighten oversight of data centers and explore safeguards for vulnerable workers, especially in media and creative industries. As businesses merge technological and human-capital planning, the long-term challenge will be balancing innovation with equitable employment and sustainable infrastructure.
Source – https://moderndiplomacy.eu/2025/12/05/ai-boom-ignites-innovation-and-alarms-over-jobs-power-demand/