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AI layoff trap raises wider risks for workers, firms and demand

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AI layoff trap raises wider risks for workers, firms and demand

Artificial intelligence , or AI , is sending another tremor through the economy as organisations around the world continue to cut jobs and adopt AI to replace workers and reduce costs.

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Summary

But when workers are laid off and lose income, consumer purchasing power also falls, affecting sales of goods and services across the wider economy.

The study, The AI Layoff Trap, or the “ AI layoff trap ”, indicates that while AI can raise productivity and reduce costs for businesses, broad labour replacement may cause people’s income and purchasing power to decline, creating a new risk that affects not only workers but also businesses and the economy as a whole.

Read full article at Nation Thailand →

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