Google DeepMind Economist Sees No AI Job Losses Yet

A senior economist at Google DeepMind says he has found no evidence that artificial intelligence is currently driving white-collar job losses, despite widespread anxiety about AI-driven workforce reductions.

Alex Imas, who serves as director of AGI economics at Google DeepMind and teaches economics at the University of Chicago, told the Dwarkesh Podcast that researchers examining employment data have not detected broad AI-related layoffs. Even in software engineering and other highly exposed sectors, he said, "there's just not really anything going on."

The FOMO layoff risk

While Imas sees no current job apocalypse, he outlined a concerning hypothetical scenario. Companies might begin cutting staff not because AI has made workers redundant, but simply to signal they are adopting the technology.

"Let's say we get into a narrative where if you're a firm and you're not laying people off, then you're seen as not adapting AI enough," Imas said. "That's super worrying, where the firm might actually be worse off after the layoffs than before the layoffs, but it's just doing the layoffs to have the perception that, 'Look, we're not behind the times. We're using AI.'"

This cascade effect driven by fear of missing out could become self-reinforcing, he suggested, even if the underlying technology has not actually eliminated the need for human workers.

A Google DeepMind spokesperson clarified that Imas appeared on the podcast in a personal capacity and emphasized his scenario was hypothetical. The spokesperson noted that Google DeepMind CEO Demis Hassabis has previously said AI could boost worker productivity and generate new employment opportunities.

Productivity gains without displacement

Imas argued that AI's more likely near-term impact involves augmenting rather than replacing workers. When AI automates nine out of ten tasks in a role, he explained, employees can concentrate on the remaining task that machines cannot handle, potentially making the overall job more productive.

Several companies have already cited AI when announcing workforce reductions. Block, led by Jack Dorsey, and Snap, which makes Snapchat, both referenced the technology in layoff announcements. Meanwhile, prominent AI executives including Anthropic CEO Dario Amodei have warned that AI could eliminate substantial entry-level white-collar positions.

Why it matters

Executives face mounting pressure from investors and boards to demonstrate AI adoption. If companies begin treating layoffs as a proxy signal for technological progress—rather than making cuts based on genuine productivity analysis—they risk damaging their operations while accelerating a self-fulfilling prophecy of AI-driven job losses. The gap between AI's actual current impact on employment and the perception-driven decisions companies might make represents a significant risk for workers and businesses alike.

These details were first reported by Business Insider.