Nvidia CEO Warns AI Could Displace 20% of Jobs by 2030

Nvidia’s chief executive, Jensen Huang, recently cautioned that while AI could significantly boost workplace productivity, it also poses a risk of job displacement if businesses fail to innovate continuously. In an interview with Fareed Zakaria from CNN, Huang responded to warnings from Dario Amodei, CEO of Anthropic, who had earlier predicted that AI could lead to a sharp rise in unemployment, potentially wiping out half of white-collar entry-level roles and pushing unemployment to around 20% over the next five years.

Huang argued that companies developing new ideas can both enhance productivity and create new roles. However, he warned that without fresh ambitions, productivity gains could lead to fewer positions. He emphasized that the most crucial factor is the continuous generation of new ideas within society, which drives growth and productivity.

Investment in AI has surged, sparking a technology boom and raising concerns about job losses. A survey from 2024 indicated that 41% of CEOs expect AI to reduce staff numbers at several thousand firms in the coming five years. Additionally, a report from January 2024 found that 41% of companies plan to shrink their hiring by 2030 due to AI-driven automation.

Huang acknowledged that AI will eventually impact everyone’s jobs, with some roles becoming obsolete while new ones emerge. He expressed hope that increased productivity from AI will uplift industries. Nvidia, valued at $4 trillion, is at the forefront of the AI wave, with its chips powering data centers used by major tech companies to run cloud operations and AI models.

Defending AI’s progress, Huang noted that over the past 300 years, including the computer age, both output and employment have risen. He believes that new technology fosters an abundance of ideas and fresh ways of building better futures. AI is set to change how tasks are accomplished, with over half of major U.S. firms planning to automate tasks like supplier payments and invoice processing.

Huang admitted that AI has even altered his own role, but he still retains his position. Many companies already use tools like ChatGPT and other chatbots to accomplish tasks such as writing job adverts, press statements, and marketing plans. Huang's perspective contrasts with some AI researchers who predict widespread job displacement by 2045. Industry leaders like Meta's Yann LeCun argue that AI will transform rather than eliminate jobs entirely, creating new industries and opportunities beyond current imagination.

Huang's comments come at a time when the impact of AI on employment is a hotly debated topic. While some companies have reported significant cost savings and productivity gains from AI tools, these benefits have come alongside substantial layoffs. For instance, Microsoft credited AI tools for saving over $500 million in call center costs and generating 35% of new product code, but these gains were accompanied by 15,000 job cuts. Similarly, Ford's CEO has predicted that AI could replace half of all jobs in the US, while Anthropic's Dario Amodei warns of up to 20% unemployment due to AI.

Despite these concerns, there is evidence that AI is driving wage premiums for employees with advanced AI skills. Companies are investing heavily in AI training, with initiatives like Microsoft's $4 billion global reskilling program and Danone's plan to train 20,000 frontline workers in AI tools by 2026. This suggests that while AI may displace some jobs, it is also creating new, high-skilled positions that require advanced training and expertise.

The debate over which jobs are most at risk from AI continues. Some argue that entry-level roles are most automatable, while others warn that AI could erode the value of senior expertise, especially for those resistant to change. The Harvard AI Index 2025 finds that generative AI most impacts both entry-level and high-skill jobs, boosting productivity but also shifting the nature of work. This highlights the need for continuous upskilling and adaptability in the workforce to stay relevant in an AI-driven economy.

In summary, while AI will undoubtedly transform the job market, creating new opportunities while making some jobs obsolete, the overall impact will depend on how well individuals and organizations adapt to these changes. The focus should be on continuous learning and upskilling to ensure that the workforce remains competitive in an AI-driven world.