So far, the number of jobs eliminated by generative artificial intelligence is low.
However, executives and management consultants are showing signs that the technology could trigger a much larger wave of white-collar layoffs, The Wall Street Journal reported Monday (Feb. 12).
Unlike past automation revolutions, generative AI does more than speed up everyday tasks, the report said. It can also create content and synthesize ideas, thus doing the type of knowledge work now performed by millions of white-collar workers.
Among them are managers, whose jobs might never come back, the execs and consultants said in the report, as generative AI either transforms or replaces tasks done throughout the corporate structure across all sorts of industries.
“This wave [of technology] is a potential replacement or an enhancement for lots of critical-thinking, white-collar jobs,” said Andy Challenger, senior vice president of outplacement firm Challenger, Gray and Christmas (CGC), per the report.
Companies have attributed more than 4,600 layoffs to AI since last May, especially in the tech and media spaces, the report said, citing CGC data. The company said the real number of AI-related job eliminations is likely higher, since many companies haven’t explicitly connected cuts to AI adoption in their layoff announcements.
However, the report also noted that business leaders said they think AI will enhance some white-collar jobs, letting workers and their managers focus on more meaningful tasks.
Executives at tech investment firm Prosus told the news outlet that’s already happening at their company, with AI automating more of its staff’s jobs.
“Engineers, software developers and so on can do the work twice as fast,” said Euro Beinat, Prosus’ global head of AI and data science, per the report. “One of the side effects is that a lot of these employees can do more and do slightly different things than we were doing before.”
But the reality is that AI can now let one person do the work of several, which in some scenarios can lead to job cuts.
“AI is undoubtedly transforming the workforce, and companies are navigating the delicate balance between leveraging technology for increased productivity and managing the potential job cuts associated with AI implementation,” PYMNTS wrote Friday (Feb. 9). “As AI continues to advance, it is crucial for businesses to consider the ethical and societal implications of these technological advancements while ensuring a smooth transition for their employees into the future of work.”
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Tether Co-Founder Reeve Collins is reportedly backing a new stablecoin project called Pi Protocol that will be backed by yield-bearing real-world assets like bonds.
The new stablecoin is expected to debut on the Ethereum and Solana blockchains in the second half of the year, Bloomberg reported Tuesday (Feb. 18).
Pi aims to let industry participants who market the stablecoin get most of the profits from it, according to the report.
The company will use smart contracts to mint its USP stablecoin and will reward the minters with another token, USI, as yield, the report said.
“We view Pi Protocol as the evolution of stablecoins,” Collins told Bloomberg. “Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve.”
Collins served as Tether’s first CEO from 2013 to 2015, when he and his partners sold the company to the operators of the crypto exchange Bitfinex, according to the report.
Tether said in January that it made $13 billion in profits in 2024, Bloomberg reported Jan. 31, adding that the stablecoin issuer files quarterly information as part of a third-party attestation by accounting firm BDO rather than issuing audited financial statements.
In addition, Tether said it issued more than $23 billion in USDT in the last three months of 2024, and had more than $7 billion in excess reserves.
It was reported in January that an executive order issued by President Donald Trump will boost stablecoins and issuers like Tether and Circle Internet Financial.
Trump’s order aligned stablecoin’s with the government’s efforts to maintain the global supremacy of the dollar and blocked a potential competitor to stablecoins by barring development of a central bank digital currency (CBDC).
On Monday (Feb. 17), Standard Chartered Bank Hong Kong (SCBHK), Animoca Brands and HKT said they agreed to form a joint venture to issue a stablecoin backed by the Hong Kong dollar.
Cedar Money said Jan. 30 that it raised $9.9 million in a seed round to support the growth of its payments software that uses stablecoins to facilitate cross-border payments between developed and emerging markets.