Over the past year, major companies like Amazon, Verizon, and IBM have announced significant layoffs, totaling over 4,200 job cuts, as they embrace AI and automation. Amazon cut 14,000 corporate positions, Verizon eliminated 13,000 jobs, and IBM is reducing back-office roles. The International Labour Organization warns that clerical and cognitive jobs are highly threatened by generative AI, with rising unemployment risks linked to higher AI exposure, especially in these occupations since 2022.
As AI technologies are increasingly integrated into business operations, the traditional methods of monetary policy are being disrupted. The Federal Reserve’s tools, aimed at maximizing employment and price stability, may no longer function effectively, as cheaper capital encourages investment in automation rather than job creation. This transition is shaping a new economic landscape characterized by digital infrastructure, with over 130 countries exploring central bank digital currencies (CBDCs) and the U.S. launching the FedNow instant payment network in 2023. Global payment networks are expected to grow from $2.4 trillion to $3.1 trillion by 2028, indicating vast opportunities in the underappreciated digital finance sector.
