Cheaper AI May Boost Job Creation, Not Worryingly Reduce It: Insights from Apollo's Chief Economist

Economists Weigh in on AI's Impact on Employment

Fears that artificial intelligence (AI) could trigger a wave of job losses may be overstated, according to Torsten Sløk, chief economist at Apollo Global Management. In a blog post published on Friday, 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.

According to Apollo.com, Sløk found little evidence of job losses due to AI, citing employment data from ADP. Rather than replacing workers, AI is currently creating new demand for specialized talent. 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.

The surge in spending tied to AI is supporting both employment and inflation as businesses race to expand computing capacity and related infrastructure. This trend reflects the Jevons paradox, the idea that improvements in efficiency can ultimately increase demand rather than reduce it. Sløk summarized the phenomenon by stating that cheaper technology is creating more demand and more jobs.

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

While several large corporations have linked workforce reductions to AI-driven efficiency gains, some prominent technology leaders have challenged the idea that AI is already causing widespread unemployment. 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.

Altman noted that 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. He added that the "human part" of many jobs remains difficult to replace, helping explain why the feared wave of displacement has yet to materialize.

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The debate remains far from settled, with some economists and business leaders believing AI will boost productivity and create entirely new categories of employment, while others warn that labour market disruption may take years to appear in official statistics. 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.