Anthropic CEO Warns AI Job Losses Are Coming, Says Government Must Step In

The head of one of the world’s most talked-about AI companies, Anthropic CEO Dario Amodei, believes governments must prepare to step in and retrain the workforce as AI fundamentally reshapes the job market.

He used his appearance at the New York Times DealBook Summit to stress that, unlike previous technological shifts, the impact of AI on jobs is a significant concern that the market alone cannot solve.

Amodei, who has been one of the most candid voices in the AI industry regarding its potential downsides, was clear that expecting a business-as-usual reaction to AI’s economic effects would be a mistake.

“I am concerned that there are some who see this technology as analogous to previous technological revolutions, as being like the internet, as being like telecommunications, where, yes, there are some issues, but you know the market will figure it out,” Amodei said, adding, “I think those who are closest to AI don’t feel this way.”

He has previously warned that up to half of all entry-level jobs could be lost within the next five years due to AI adoption.

Government’s role: Retraining and the ‘big pie’

When asked about what needs to be done to address the likely job losses, Amodei outlined a multi-layered approach, beginning with the private sector but requiring significant government involvement.

He noted that companies should initially be urged to use AI to generate new value rather than simply replacing human staff. Amodei gave the example of a person whose job becomes 90% automated, who could be leveraged to accomplish ten times the work, ultimately driving a massive increase in overall output.

However, Amodei believes the government’s intervention is ultimately necessary. He stated this massive undertaking requires a partnership, emphasizing, “Companies will have to work with governments, but I do think, at some point, the government will need to step in.” While he acknowledged, “I don’t see retraining programs as a panacea, but I think we are going to need some form of that,” he saw them as a necessary part of the transition.

Furthermore, Amodei pointed to the immense potential for new wealth generation, predicting that AI could increase annual productivity growth to as high as 5% or 10%. This creates a “big pie” that the government will need to help distribute to those who are not the direct “fortunate beneficiaries” of the technology. 

Ultimately, he suggested this long-term change could lead to a societal restructuring where work is no longer centered on economic survival, allowing for a focus on personal fulfillment, an idea first posited by economist John Maynard Keynes.

The financial dilemma: Are we in an AI bubble?

The CEO also weighed in on the massive amounts of money being spent on building the data centers that power AI, acknowledging investor concerns about financial risk.

Amodei admitted that Anthropic and other companies are operating in a “cone of uncertainty” as they try to balance the risk of spending too little (and being unable to serve customers) with spending too much (and potentially facing bankruptcy).

“On the technological side of it, I feel really solid… I think I’m one of the most bullish people around, and I think it pencils out,” Amodei noted. However, he admitted, “On the economic side, you know, I have my concerns where even if the technology is, you know, really powerful and fulfills all its promises. I think there may be players in the ecosystem who, if they just make a timing error, if they just get it off by a little bit, bad things could happen.”

National security is an ‘absolute imperative’

Amodei reiterated his strong stance on the sale of advanced AI chips to China, viewing it as a critical national security issue, not just a business decision.

“Democracies need to get there first — it’s an absolute imperative,” Amodei said. “And if we sell the chips to China, it’s more likely they will get there first.” He warned that a future where an authoritarian country possesses a powerful AI would allow it to outsmart democracies in “intelligence, defense, economic value, and R&D.”

Here’s a deeper look at how AI-linked layoffs are reshaping the US job market.
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