The AI boom is creating jobs, not destroying them, Apollo says

[Artificial Intelligence - innovations and new technology. AI text on digital head and keyboard]
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Artificial intelligence is fueling job creation rather than eliminating positions, according to Apollo Chief Economist Torsten Slok, who argues that current labor market data show no sign of AI-driven employment losses.

Slok pointed to weekly ADP employment figures, which have strengthened steadily in recent months, with hiring momentum accelerating into the spring. The data suggest that businesses continue to add workers even as investments in artificial intelligence technologies surge across industries.

Instead of replacing large numbers of employees, companies are actively recruiting specialists to deploy and manage AI systems. Demand for AI implementation experts has increased alongside a massive wave of spending on data centers, cloud infrastructure, and computing capacity. That buildout is also contributing to higher wages for skilled technology workers while pushing up costs for semiconductors, equipment, and energy.

The trend reflects what economists call the Jevons Paradox, where greater efficiency lowers costs and ultimately drives higher consumption rather than reducing demand. In the case of AI, cheaper and more accessible technology is encouraging broader adoption, leading to additional investment, hiring, and economic activity.

As a result, Slok believes the labor market may be stronger than widely anticipated. He said May nonfarm payrolls could come in well above the consensus forecast of 95,000, highlighting the continued employment boost from the ongoing AI spending boom.

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