CEOs face interconnected challenges from trade and Fed policy: Hornby.

AlixPartners Co-CEO Rob Hornby discusses the impact of AI on the job market, stating that it will create more jobs than it eliminates with a net positive effect. Hornby acknowledges that CEOs are navigating "interlocking issues" tied to trade and the Federal Reserve, but believes that AI will have a positive impact on the job market.

The debate surrounding artificial intelligence (AI) and its impact on the job market has been a subject of intense discussion. While some industry leaders, such as Ford Motor Chief Executive Jim Farley, predict significant job displacement due to AI, others, like AlixPartners Co-CEO Rob Hornby, offer a contrasting perspective. Hornby asserts that AI will create more jobs than it eliminates, resulting in a net positive effect on the job market.

According to Hornby, the current "low hiring, low firing" economic environment is not solely driven by AI but is also influenced by trade policies and Federal Reserve actions. He believes that AI will ultimately have a positive impact on the job market, a stance that differs from the views of CEOs like Jim Farley and Dario Amodei of Anthropic [1]. Amodei, for instance, has stated that AI could lead to a 10% to 20% increase in U.S. unemployment within the next one to five years [1].

Despite the differing opinions, it is evident that AI is reshaping the job market. For example, recent college graduates are experiencing higher unemployment rates compared to the overall U.S. joblessness rate, suggesting that the job market is evolving [2]. This trend is further supported by the dilution in the value of a 4-year degree, which has led to a decrease in employability for students below the 75th percentile [2].

In contrast, the tech industry is witnessing significant investment in AI, as seen in Alphabet's earnings report. The company's cloud-computing unit delivered a substantial increase in revenue, driven by investments in in-house chips and AI models like Gemini [3]. This indicates that while AI may automate certain jobs, it also creates new opportunities and drives economic growth.

The discussion around AI's impact on the job market is multifaceted and complex. While some predict job displacement, others, like Hornby, argue for a more nuanced view. As AI continues to evolve, it is crucial for policymakers, businesses, and individuals to stay informed and adapt to the changing landscape.

References:
[1] https://journalrecord.com/2025/07/22/capital-perspectives-ais-job-market-impact/
[2] https://www.cryptopolitan.com/china-billion-worth-of-nvidia-ai-chips/
[3] https://economictimes.indiatimes.com/markets/stocks/news/alphabet-shares-jump-3-as-ai-driven-spending-fuels-cloud-revenue-surge/articleshow/122884931.cms