Sacks says AI accounts for only 4.7% of year-to-date layoffs, likely inflated since CEOs blame AI for poor performance.
“So only 6,000. And if you look at the year to date in the Challenger Gray report, AI has only accounted for 4.7% of total layoffs.”
Sacks asserts AI has caused no meaningful job loss yet and has driven half of this year's 4% GDP growth.
“Not in any meaningful numbers. And in fact, AI has been responsible for about half of GDP growth this year. So GDP growth is about 4%.”
Sacks cites November Challenger Gray report showing only 6,000 U.S. layoffs attributable to AI, down 53% from October spike.
“The number fell by 53% and only about 6,000 of the layoffs that were announced in November in the entire country were attributable to AI.”
Sacks argues AI will increase demand for knowledge workers by making code cheaper, following Jevons Paradox.
“So the amount of software generated in the economy was limited by that. I think it's gonna increase massively now because the cost of generating code is coming down so much.”