Davos Leaders Back AI as Job Creator Despite Layoff Fears
At the annual World Economic Forum in Davos, business leaders struck an optimistic tone on artificial intelligence, arguing that the technology will ultimately create more jobs—even as concerns grow over layoffs and automation.
Despite freezing temperatures, geopolitical uncertainty, and scepticism surrounding AI, executives said technological advances are reshaping work rather than eliminating it entirely. Several leaders told Reuters that while some roles may disappear, new and better-paying jobs would emerge across industries.
AI Seen Driving New Employment
Among the strongest advocates was Jensen Huang, CEO of Nvidia, who said AI is already creating demand for skilled trades such as electricians, plumbers, and steelworkers.
“Energy is creating jobs. The chip industry is creating jobs. The infrastructure layer is creating jobs,” Huang said.
“Jobs, jobs, jobs.”
That optimism stood in contrast to earlier tensions at Davos linked to trade disputes, which eased after Donald Trump reached an agreement to avoid new tariffs and prevent a wider rift with Europe.
Scepticism Beneath the Optimism
Despite upbeat messaging, doubts around AI’s impact on workers lingered. Labour leaders warned that AI is often promoted as a productivity tool that allows companies to do more with fewer employees.
Christy Hoffman, head of the UNI Global Union, said many workers fear AI-driven efficiency could translate into job cuts rather than shared gains.
Concerns were also raised about the social impact of AI tools, including the risks associated with widespread use of chatbots and automation.
Businesses Look for Returns on AI
Executives acknowledged that companies are now under pressure to show returns on heavy AI investments. Matthew Prince of Cloudflare said AI innovation would continue despite market volatility, though he warned of risks to small businesses if AI systems become too dominant.
At IBM, executives said AI has reached a stage where real automation and efficiency gains are possible. However, PwC reported that only a small share of CEOs currently see clear cost savings or revenue growth from AI.
Still, some firms reported measurable benefits. BNY said AI had dramatically reduced client onboarding times, while Cisco said projects once taking years can now be completed in weeks.
Headcount Remains a Sensitive Issue
At BlackRock, executives said AI is being used to support growth rather than reduce staff numbers. In contrast, Amazon is preparing further job cuts as part of a broader cost-reduction effort, according to people familiar with the matter.
Union leaders said job anxiety remains high, especially where workers have limited input into how AI is deployed.
Calls for Preparation, Not Panic
Bill Gates urged governments and businesses to prepare for both the disruption and opportunities AI will bring, suggesting measures such as taxation of AI-driven activities to support affected workers.
“There are problems, but they’re solvable,” Gates said.
Davos concluded with remarks from Elon Musk, CEO of Tesla and founder of SpaceX, who argued that optimism is essential when navigating technological change.
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