Major AI CEO sounds alarm on coming jobless ‘bloodbath’ | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Artificial intelligence (AI) technology advances offer businesses efficiency, innovation, and cost savings, transforming industries with automation and data-driven insights.

However, concerns persist about AI’s impact on American jobs, as automation threatens traditional roles, requiring adaptation and policies to ensure economic stability.

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Dario Amodei, CEO of major AI company Anthropic, recently issued a serious warning about the technology’s near-term potential shock on U.S. employment.

If his fears turn out to be justified, the effect of AI on jobs will be felt by workers in many industries, with a massive impact on those beginning their careers.

That is because AI is transforming entry-level positions — especially in industries such as technology and finance — by taking over repetitive tasks such as programming, data processing, and administrative duties.

Many companies are scaling back hiring of recent graduates while focusing more on experienced professionals. Leading firms, including major banks and tech companies, are reassessing junior roles becuase AI can now perform much of their workload.

It does not take much imagination to envision that hiring slowdowns could easily be followed with layoffs.

As a result, newcomers face greater challenges in gaining experience, prompting them to develop proficiency in AI-driven tools. While certain traditional roles are disappearing, new opportunities are emerging for those who can effectively integrate AI into their skill set.

But Amodei says he worries that there is a sense of denial in the business community about the enormity of the coming blow to which the workforce will be subjected.

Anthropic CEO Dario Amodei is bullish about the positive impacts artificial intelligence will bring to U.S. businesses, but worries that potential near-term impacts on American jobs are being ignored.

Getty/TheStreet

Dario Amodei warns U.S. workers about AI’s short-term impact on employment

On May 22, Amodei’s Anthropic introduced what it calls its next generation of Claude models. Claude is an AI-powered coding model designed to take over complex software development currently done be humans.

Claude automates coding tasks, generating, reviewing, and optimizing code efficiently. It assists with debugging, documentation, and development workflows, reducing manual effort while improving software quality and productivity.

Amodei is understandably excited about the potential use of the new AI technology for improved business efficiency and profits. That is the case for Anthropic’s use of AI for coding purposes and also for other uses of the technology such as performing those entry-level tasks discussed above.

But it comes with a price — and Amodei seems to believe it is the responsibility of AI innovators to raise awareness about the tough reality on the horizon for American jobs.

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Amodei talked with Axios about his concerns.

“We, as the producers of this technology, have a duty and an obligation to be honest about what is coming,” Amodei said, according to Axios. “I don’t think this is on people’s radar.”

“It’s a very strange set of dynamics,” he reportedly continued. “Where we’re saying: ‘You should be worried about where the technology we’re building is going.’ Critics reply: ‘We don’t believe you. You’re just hyping it up.'”

“He says the skeptics should ask themselves: ‘Well, what if they’re right?'” Axios reported.

Amodei’s enthusiasm about artificial intelligence is tempered by job loss worries

Amodei believes AI technology, which can now solve complex problems at very close to human capabilities, has the power to bring about massive amounts of change in very quick time — with both positive and negative effects.

One vision Amodei articulated is one in which “cancer is cured, the economy grows at 10% a year, the budget is balanced — and 20% of people don’t have jobs,” according to Axios.

The scope of the dilemma, Amodei seems to believe, is only rivaled by the speed at which the technological advances are taking place. And many of those who ought to be helping to sound the alarm are either unaware or purposefully avoiding the conversation.

“Even those who are optimistic AI will unleash unthinkable cures and unimaginable economic growth fear dangerous short-term pain — and a possible job bloodbath during Trump’s term,” Axios wrote.