Artificial intelligence-related job displacement is coming, though no one knows how fast it will proceed, how far it will go, and which sectors it will affect most. Much depends on the pace at which individual firms apply the technology to their operations. A recent US Census Bureau Business Trends and Outlook Survey indicates that only 20 percent of firms with fewer than 20 employees currently use AI, compared to 37 percent of businesses with at least 250 employees.

In 2025, at least one ecommerce leader acknowledged that he wasn’t going to increase headcount anymore before considering if AI could fill the gap first. His message reflected a…

Raghuram G. Rajan explains what governments and large employers can do to alleviate rising uncertainty about labor displacement.