Cheaper AI could create more jobs, not fewer: Apollo's chief economist Torsten Sløk- What he means

Fears that AI could trigger a wave of job losses may be overstated, according to Apollo Global Management chief economist Torsten Sløk. In a blog post on Friday, he said the current labour market data show little sign of AI-driven job destruction despite a growing number of companies citing the technology while announcing layoffs.

According to Business Insider, Sløk pointed to employment data from payroll processor ADP and argued that concerns about widespread AI-led unemployment are not yet reflected in the numbers. In the blog published on Apollo.com, he wrote: "There is zero evidence of job losses because of AI."

Rather than replacing workers, AI is currently creating new demand for specialised talent, he argued. "Many firms are hiring AI implementation experts, and the data center buildout is putting upward pressure on salaries for AI experts and on prices of semiconductors, equipment and energy," Sløk wrote.

The economist said the surge in spending tied to AI is supporting both employment and inflation as businesses race to expand computing capacity and related infrastructure. According to Apollo.com, the current trend reflects the Jevons paradox, the idea that improvements in efficiency can ultimately increase demand rather than reduce it. Sløk summed up the phenomenon by writing: "It is Jevons paradox playing out in real time: cheaper technology is creating more demand and more jobs."

The comments add to a growing debate among economists, executives and investors over whether AI will ultimately create more jobs than it destroys. The Business Insider report said that Sløk has consistently argued that lower costs enabled by AI could expand markets and generate fresh employment opportunities, much as previous technological revolutions did.

Layoffs continue to cloud the picture

The optimistic assessment comes at a time when several large corporations have linked workforce reductions to AI-driven efficiency gains. According to Business Insider, companies including Block, Cisco and IBM have referenced AI while discussing layoffs or restructuring efforts, fuelling concerns that automation could eventually replace large numbers of white-collar workers.

Yet some prominent technology leaders have challenged the idea that AI is already causing widespread unemployment. Reuters reported last week that OpenAI chief executive Sam Altman said artificial intelligence was unlikely to result in a "jobs apocalypse", despite growing fears about the technology's impact on employment.

A Reuters report said Altman said OpenAI had been "pretty wrong" about some of the social consequences of AI adoption, even as its predictions about technological progress had largely proved accurate. The report added that Altman said the "human part" of many jobs remains difficult to replace, helping explain why the feared wave of displacement has yet to materialise.

The debate remains far from settled. While some economists and business leaders believe AI will boost productivity and create entirely new categories of employment, others warn that labour market disruption may take years to appear in official statistics. Adding another dimension to the discussion, a recent paper published on arXiv found that employment challenges in AI-exposed occupations may have begun before the launch of ChatGPT, suggesting broader structural forces may also be shaping hiring trends.

For now, however, Sløk maintains that the evidence does not support predictions of an AI-driven jobs crisis. Instead, as he argued in the blog post, the AI boom is generating demand for new skills, infrastructure and industry developments that, at least so far, appear to be supporting rather than undermining employment.