AI Boom Drives Economic Growth but Slows Job Creation, Experts Warn

Kuala Lumpur, The rapid adoption of artificial intelligence is reshaping the global economy, boosting productivity while raising concerns about slower job creation and workforce displacement.

According to a recent analysis published by Bitget, the United States recorded strong economic expansion in 2025, with GDP growing at an annualized rate of 3.8% in the second quarter and 4.4% in the third quarter. The growth was largely fueled by strong consumer spending and corporate earnings.

However, the labor market told a different story. Only 584,000 new jobs were created throughout the year, marking the slowest employment growth since 2020 despite strong economic performance.

AI Adoption Accelerates Across Major Companies

Artificial intelligence adoption has surged across large corporations. By 2025, around 92% of Fortune 500 companies were already using generative AI tools, significantly improving efficiency and productivity.

Productivity growth reached 4.9% in the third quarter, the highest increase in two years. But this surge in efficiency has also contributed to job displacement.

Official reports recorded 54,836 layoffs linked to AI, though independent estimates suggest that 200,000 to 300,000 jobs may have been lost or never created due to automation—far higher than the official numbers.

Big Tech Gains Power in the AI Era

The rise of artificial intelligence is also reshaping corporate competition. Companies with massive financial resources are dominating the AI race because developing and maintaining advanced AI systems requires significant capital investment.

As a result, large technology companies are capturing most of the economic benefits while smaller businesses struggle to keep up. Analysts say this could lead to a more concentrated economic landscape where only a handful of companies control the AI-driven market.

Risks for Consumer Spending and Economic Stability

Despite strong economic growth, experts warn that reduced job creation could eventually weaken consumer spending — a key driver of economic expansion.

If AI adoption continues to accelerate, productivity gains may continue to outpace job creation. Policymakers are now facing increasing pressure to develop strategies such as workforce retraining and new economic models to adapt to the AI-driven labor market.

For investors and policymakers alike, the critical question remains whether the global economy can sustain growth if technological innovation continues to replace human labor at a faster pace.