As AI seeps into all corners of the market, many worry that the technology will ultimately lead to significant job losses as the technology eliminates the need for human workers. Senior vice president of Challenger, Gray & Christmas, Inc. Andrew Challenger joins Wealth! to discuss the state of AI in the labor market.

AI job cuts this year sit right about 7,000, an increase from 2023's 4,247. Challenger breaks down two reasons for the rise in job cuts: "Right now, we are seeing some increases, either from companies saying that they're replacing jobs — a small number — for AI, but we are seeing companies shifting their focus, closing down product lines, reducing the headcount they have in certain departments to grow their human capital within the AI space."

Because AI's impact on the labor force is a heated topic, Challenger notes that companies are less likely to discuss artificial intelligence in the context of job cuts.

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This post was written by Melanie Riehl