AI Startup CEO Warns of 20% Unemployment Risk from Rapid Advancements

On Wednesday, the chief executive of Anthropic, a prominent AI startup in the United States, issued a stark warning about the potential for artificial intelligence to cause widespread unemployment in the near future. The executive emphasized that while AI's capabilities are not yet at the level anticipated by some, the technology is advancing quickly and could soon lead to significant job displacement. This warning comes as AI continues to make strides in various industries, raising concerns about the future of employment and the need for policies to mitigate the potential impact on the workforce.

During the Axios’ AI+ DC summit, the executive pointed out that AI is already beginning to replace some jobs, stating, “This has already happened.” The executive's warning comes at a time when the U.S. labor market is showing signs of weakness, with the unemployment rate reaching its highest level in three years. However, it is unclear whether the slowdown in the labor market is directly related to the advancement of AI technology.

This is not the first time the executive has warned about the potential for AI to eliminate jobs. In May, the executive cautioned that AI tools developed by Anthropic and other companies could eliminate half of all entry-level white-collar jobs within the next one to five years, potentially pushing the unemployment rate to 20%. The executive acknowledged the uncertainty surrounding the timeline of these changes, stating, “When a technology changes very rapidly, you can't be sure. It might happen faster than I think, or it might happen slower than I think, or something very different might happen.”

The executive suggested that government intervention may be necessary to support individuals as they adapt to the AI revolution. One potential solution could be taxing the profits of AI companies to fund programs that help workers transition to new roles. Some critics have suggested that the executive's repeated warnings may be more about positioning themselves as a responsible leader in the field or boosting the market position of their technology. However, the executive maintained that many people underestimate the potential impact of AI, stating, “I think there's a bit of a disconnect. People sometimes say, ‘Oh, you're worried about what impact AI will have on jobs, but AI can't do this, AI can't do that.’ We're talking about today's AI, and this technology is developing very quickly.”

Warnings about AI's potential to displace jobs are not new. Last month, strategists from a major financial institution cautioned that the adoption of AI could impact approximately 90% of existing jobs, although it could also create new roles such as "AI supply chain analysts" and "AI ethicists." The institution noted that historical examples, such as the internet boom, have shown that technological revolutions can create net job gains, despite periods of job loss. The ability of workers to reskill is crucial for their reintegration into the labor market.

In 2023, another major financial institution estimated that AI could automate approximately 300 million full-time jobs, with the administrative and legal sectors facing the highest risk. The rapid advancement of AI technology and its potential to disrupt the job market underscore the need for proactive measures to support workers and ensure a smooth transition to an AI-driven economy. The executive's warnings serve as a reminder of the urgent need for policymakers to address the challenges posed by AI and to develop strategies that protect workers while fostering innovation.