AI's economic impact in USA Economy

I believe its fair to say, almost every worker in America has thought about what would it take for AI to take their job!  Regardless, if this is in 1-year or all the way out to 5-years.  Sure, the US U3 employment data shows US based unemployment is only at 4.3%. What if that number doubles due to AI causing massive layoffs across the economy?  Far fetched? Buckle up buttercup let's take a trip and see what type of info we have uncovered.

According to a Bloomberg article

AI is transforming corporate America, yet the boom remains understated in government growth statistics, according to Goldman Sachs. From a report: Analysts at Goldman pointed to the scale of the boom in a Saturday note: "Revenue at US companies providing AI infrastructure has risen by $400 billion since 2022, which at first glance seems to suggest that AI has been a meaningful driver of economic growth recently." 

Anthropic Finds Businesses Are Mainly Using AI To Automate Work 

Businesses are overwhelmingly relying on Anthropic's AI software to automate rather than collaborate on work.  A new report from the OpenAI rival, adding to the risk that AI will upend livelihoods. More than three quarters (77%) of companies' usage of Anthropic's Claude AI software involved automation patterns, often including "full task delegation". The findings were based on an analysis of traffic from Anthropic's application programming interface, which is used by developers and businesses.

Fiverr is laying off 250 employees, or about 30% of its workforce

Fiverr restructures to become an "AI-first" company.  Turner Fiverr into an AI-first company which is leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers. Fiverr operates a self-service digital marketplace where freelancers can connect with businesses or individuals requiring digital services like graphic design, editing or programming. Most processes on the platform take place with minimal employee intervention as ordering, delivery and payments are automated. Fiverr spokes person said it does not expect the job cuts to materially impact business activities across the marketplace in the near term and plans to reinvest part of the savings in the business.

Considering all this, is AI actually deflationary?

AI can be deflationary for the USA economy increasing productivity, reducing costs, and potentially lowering prices for goods and services. However, its overall impact depends on various factors, including job displacement and investment in new technologies

So being a rebel, I asked ChatGPT is AI deflationary? And it responded in this manner.  "AI is generally considered deflationary for the U.S. economy over the medium to long term—though its effects are complex, uneven across sectors, and depend on policy responses."

Based on which side you are on its either it can be beneficial.

A recent report shows that US AI spending has overtaken the US Consumer as the largest component of the US Economy. So, from the alternative perspective Mega Corp. Microsoft will invest $30 billion in the U.K. through 2028 to expand AI infrastructure and operations, including building the country's largest supercomputer with 23,000 GPUs in partnership with Nscale. 

Summary

AI is an inflection point in technology, sort of like the early days of the internet was; maybe like the iPhone was … and not being involved in it is going to leave you behind. On the flip side. Let's add in some macro data a whopping 67% Of American Workers Are Living Paycheck To Paycheck In 2025. Prolly nothing. What's your plan?

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