AI monthly: Many still unconvinced of GenAI’s relevance

AI monthly: Many still unconvinced of GenAI’s relevance

Why we believe AI reshapes work more so than it reduces overall payrolls

The desk argues that while AI is reshaping job landscapes, it is unlikely to lead to mass unemployment, as posited in Bank of America's recent commentary. Per the full note, despite approximately 25% of global jobs being exposed to AI disruptions, the historical precedent of technological advancement suggests an overall net positive effect on employment outcomes, particularly among youth workers. This view is backed by improving youth unemployment statistics seen in recent months. Given these insights, the desk anticipates stable labor market conditions that could support risk assets moving forward, particularly in economies adept at capitalizing on AI advancements.

Solving utility affordability doesn’t mean data center development goes dark

The desk believes that while utility affordability concerns are rising, the growth narrative for data centers and AI-driven power demand remains robust. Per the full note from BofA Global Research, utilities are adapting to political pressures by implementing tariffs that alleviate costs for residential customers, which could enhance economic development. This shift creates attractive entry points for investors, particularly in utilities that effectively balance growth and regulation. Our consensus target for the sector reflects these dynamics, with no high-impact events on the horizon to disrupt this trend.

Fed's Daly says she doesn't see mass unemployment or displacement from AI