(Reuters) - Risks of widespread job losses from AI are expected to remain limited this year, according to Bridgewater Associates, with constraints on computing capacity and a resilient economy blunting the technology's near-term impact on employment.
Here are more details from the research report:
Adoption remains limited, with fewer than 20% of U.S. firms reporting AI use in any business function over a two-week period, concentrated largely in information, technology and professional services, Bridgewater said citing Census Bureau data.
Over 90% of AI-using firms reported no employment effect over the past six months, and among those where it did influence staffing, more reported headcount increases than decreases, the report said.
Bridgewater flagged two near-term risks to that outlook: an escalation of the Iran conflict and cost pressures stemming from companies' AI capital investments.
Even if labor disruption stays muted, Bridgewater warns that the lack of AI-driven economic cooling may complicate the Federal Reserve's efforts to manage inflationary pressures in a tight labor market.