IBL News | New York
The Trump Administration is dismissing the risks of AI — from mass job losses to a potential financial bubble — as it is chasing faster growth and cheers soaring stock prices.
Asked whether he harbors any fears about an emerging bubble that can damage the economy, President Trump recently said, “No. I love AI.”
In an elaborated report, The New York Times concludes that the president and his top aides have fully embraced AI and showered its leading corporate backers with money and regulatory support.
That optimism was on display on Tuesday, after the federal government reported that the U.S. economy grew at an annual rate of more than 4 percent last quarter.
Kevin Hassett, the director of the White House National Economic Council, said the new data indicated the president’s broader agenda was working, as he touted signs of a “boom” in AI.
However, many economists and even some technologists in Silicon Valley say that AI might cause significant job losses and pose a risk of financial havoc.
President Trump, who has long viewed the stock market as a barometer of his economic success, has celebrated the soaring stock prices of major technology companies like Nvidia.
Through a series of executive orders, signed over the last 11 months, Mr. Trump has moved to eliminate regulatory guardrails and make it easier for tech companies to build data centers, power their operations, sell computer chips, and source critical materials.
He has done so under the advisement of David Sacks, a Silicon Valley investor now serving at the White House, who has publicly likened AI skeptics to a “doomer cult.”
For now, economic data show no mass firings due to AI. But it also proves how it is reshaping the labor force, particularly for younger Americans, including recent college graduates.
A study from the Federal Reserve Bank of New York found that companies embracing AI in the region mainly opted to retrain their workers, rather than let people go. More striking, however, was the slow rate at which these companies were hiring new workers, especially for college-educated positions.
The New York Fed’s report also found that adoption disproportionately reduced employment for workers ages 22 to 25 in industries set to be highly affected by the technology.
This month, President Trump signed a directive that restricted states from imposing their own regulations on the technology.