David Solomon dismisses the “AI apocalypse” narrative, highlighting economic resilience amid rapid tech adoption—while warning of potential bumps ahead.
- Economic Adaptability Wins Out: David Solomon argues that while AI will cause disruptions, the nimble U.S. economy has historically adapted to technological shifts, creating new jobs and businesses in the process.
- Layoffs Not Just AI’s Fault: High-profile job cuts at companies like Amazon, Meta, Salesforce, and Microsoft are often linked to AI efficiency gains, but executives emphasize they’re not primarily AI-driven—yet surveys show limited actual job reductions due to the tech.
- AI Adoption on the Rise, with Mixed Outcomes: A Goldman Sachs survey reveals accelerating AI integration across industries, predicting widespread use in the coming years, but Solomon cautions that not every company will thrive, potentially leading to uneven economic impacts.
In an era where artificial intelligence is reshaping industries at breakneck speed, fears of widespread job losses have dominated headlines. From anxious job seekers to top policymakers like Federal Reserve Chair Jerome Powell, the specter of an “AI jobs apocalypse” looms large. But David Solomon, the CEO of Goldman Sachs—one of Wall Street’s most influential firms—is pushing back against the hysteria. Solomon offered a grounded perspective, drawing on centuries of technological evolution to argue that humans and economies are far more resilient than the doomsayers suggest.
Solomon’s Optimistic Take
Solomon’s optimism stems from a deep belief in economic flexibility. “There will be disruption. But I’m a big believer that our economy is very nimble, very flexible,” he explained. He points to history as evidence: from the Industrial Revolution to the rise of the internet, waves of innovation have flooded society, displacing some jobs while birthing entirely new sectors. “When you look at the technology that has flooded over hundreds of years into our society, we adapt,” Solomon said. “We find new businesses. We find new jobs. I don’t believe it will be different this time.” This view isn’t just philosophical—it’s informed by Goldman Sachs’ front-row seat to global markets, where they’ve witnessed economies pivot time and again.
Unpacking AI-Linked Layoffs
Recent headlines might suggest otherwise, with a spate of AI-linked layoffs grabbing attention. Take Amazon’s cut of 14,000 employees last week, which some attributed to AI efficiencies. Yet, during the company’s quarterly earnings call, CEO Andy Jassy downplayed the connection, stating the reductions were “not even really AI-driven, not right now at least.” Still, Jassy has been candid about the future, warning earlier this year that AI could mean Amazon won’t need as many employees down the line due to productivity boosts. Similar stories echo across Big Tech: Meta slashed 600 jobs in its AI division, Salesforce replaced thousands of customer-service roles with AI agents, and Microsoft axed 9,000 positions earlier this year. Microsoft CEO Satya Nadella acknowledged the cuts but remained forward-looking, noting the company would add jobs “with a lot more leverage than the headcount we had pre-AI.”
Despite these eye-catching moves, Solomon urges a broader lens. A fresh survey from Goldman Sachs investment bankers reveals that only 11% of their clients—spanning diverse sectors like real estate, tech, and finance—are actively cutting jobs because of AI. This suggests the layoffs we’ve seen might be more about broader cost-cutting or restructuring than a direct AI takeover. Instead, the real story is one of accelerating adoption. The survey found that 37% of clients are already using AI in their core business processes for regular production. Looking ahead, the bankers predict this will surge: more than half of clients could integrate AI within the next year, and by three years from now, a whopping 74% will be on board.
The Job Migration Effect
From Solomon’s vantage point, this shift could indeed trim white-collar roles in some areas, but he insists those jobs won’t vanish—they’ll simply migrate elsewhere in the economy. “Corporate AI implementation may mean fewer white-collar jobs, but these positions will be picked up in other parts of the economy,” he asserted. This echoes historical patterns, like how the advent of computers eliminated typist roles but exploded demand for software developers and IT specialists. In today’s context, AI might automate routine tasks in finance or customer service, but it could simultaneously fuel growth in fields like AI ethics, data annotation, or specialized consulting—areas where human ingenuity remains irreplaceable.
The Double-Edged Sword: Enthusiasm Meets Caution
That said, Solomon isn’t blindly enthusiastic. He acknowledges AI’s growing hype as a potential double-edged sword. While he’s previously avoided labeling the AI market surge a outright “bubble,” he warns of inevitable challenges. “The technology is exciting—there should be a lot of enthusiasm for it,” he said. “But there will be bumps along the way, too.” Just as past tech booms like the dot-com era produced winners and losers, AI could exacerbate inequalities if not managed carefully. Not every company will navigate the transition smoothly, and sectors slow to adapt might face steeper disruptions.
Solomon’s message is one of cautious confidence. As AI continues to permeate industries, from Wall Street trading floors to everyday business operations, the key lies in adaptation—not avoidance. By leaning on the economy’s proven nimbleness, we can turn potential pitfalls into opportunities. For workers worried about the future, this perspective offers reassurance: history shows we’re not just survivors of change—we’re its architects. As Solomon puts it, we’ve adapted before, and we’ll do it again.