Yazılar

New York Fed: AI Adoption Has Yet to Cause Significant Job Losses

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Artificial intelligence adoption is rising among businesses in the Federal Reserve’s New York district, but so far it has not significantly reduced employment, according to a blog post from the New York Fed on Thursday.

“Businesses reported a notable increase in AI use over the past year, yet very few firms reported AI-induced layoffs,” Fed economists wrote, noting that retraining is more common than job loss. “So far, the technology does not point to significant reductions in employment,” they added.

Concerns remain that AI could eventually displace higher-paid professional and managerial roles. Investors are pouring capital into AI technologies amid broader labor market softening, but the Fed noted that the true impact on employment is likely to unfold gradually over time.

Looking ahead, firms anticipate AI could eventually lead to layoffs and slower hiring as integration deepens. The survey found AI use among services firms climbed to 40% in the past year, up from 25%, with nearly half planning to adopt it within six months. In manufacturing, AI adoption rose to 26% of firms from 16% a year earlier, with about a third expecting to implement it in the near term.

Blackstone’s £10 Billion Data Centre Project in North East England Approved

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Blackstone, a prominent U.S. private equity firm, has received planning approval for its ambitious $13 billion “hyperscale” data centre project in North East England. The Northumberland County Council granted unanimous approval for the facility on Tuesday, with plans for the site in Blyth, Northumberland to span approximately 540,000 square metres.

The investment, which could reach up to £10 billion, will involve a large-scale data centre campus designed to meet the growing demand for data storage and cloud computing services. These “hyperscale” data centres are integral to supporting businesses, especially with the increased reliance on technologies like artificial intelligence.

The project is set to create substantial employment opportunities, with 1,200 long-term construction jobs and hundreds of positions for the operation of the centres. Additionally, up to 2,700 indirect jobs could be supported by the project. As part of the agreement, Blackstone will also contribute to a £110 million fund aimed at fostering economic growth and job creation in the region, particularly along the newly opened “Northumberland Line” railway.

This development follows the collapse of a previous plan for the site, which was originally designated for Britishvolt’s electric vehicle battery manufacturing plant before its closure last year. Blackstone’s initiative reflects the increasing demand for data centre capacity, driven by the surge in artificial intelligence and cloud computing, despite challenges in meeting this demand, according to recent research by CBRE Group.

Yellen Confident in U.S. Economy, Sees Path to ‘Soft Landing’ Without Major Layoffs

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Treasury Secretary Janet Yellen reassured the public on Saturday that the U.S. economy remains robust, despite recent weak job reports that have unsettled investors and led to stock market declines. Speaking at the Texas Tribune Festival in Austin, Yellen acknowledged a slowdown in job growth compared to the post-pandemic hiring frenzy but emphasized that the economy is “deep into a recovery” and “operating at full employment.” She noted that while job openings have decreased, significant layoffs have not materialized, indicating economic stability. Yellen also pointed to the Federal Reserve’s ability to reduce inflation without triggering a recession, describing the current situation as a “soft landing.” Her comments followed the release of nonfarm payroll data for August, which showed lower-than-expected job growth but a slight dip in the unemployment rate to 4.2%. The Treasury Secretary remained optimistic about the economy’s trajectory, downplaying fears of an imminent recession.