**
As artificial intelligence (AI) rapidly evolves, its impacts on the job market, wage growth, and the environment are becoming increasingly alarming. Recent statistics reveal that the US economy has shed 23,000 jobs in July alone, with previous months showing further downward adjustments. This troubling trend raises critical questions about the role of AI in exacerbating economic inequality and environmental degradation.
Job Losses and Wage Stagnation
The latest data from the Bureau of Labor Statistics paints a bleak picture of the US labour market. In addition to the job losses in July, revisions to May and June’s figures indicate that the economy has lost a staggering 103,000 jobs more than previously thought.
Compounding this crisis, wage growth has decelerated sharply. Average hourly earnings saw a meagre increase of just 0.1% from June, reflecting a mere 3.2% rise over the past year—the lowest annual growth rate in five years.
Economists assert that the rise of AI could be a significant factor in these disheartening statistics. Research from Morgan Stanley suggests that unemployment is 0.5 percentage points higher in sectors vulnerable to AI, affecting nearly a third of all jobs. The impact is particularly severe for younger workers, who face longer periods of unemployment compared to their peers in less exposed industries.
The Inequality Gap Widens
The stark reality is that the advent of AI threatens to entrench wealth inequality even further. Economists Sania Edlich and Torsten Slok have documented a 6.7% contraction in wage growth for jobs susceptible to AI since 2023, leading to an estimated $28 billion in losses for approximately 5.8 million workers.
Despite the promises of AI proponents that the technology will create new job opportunities in the long run, the immediate consequences are troubling. As John Maynard Keynes famously noted, “In the long run, we are all dead.” For many workers today, the immediate loss of income and opportunities is too pressing to ignore.
A survey conducted by Reuters/Ipsos revealed that more than half of Americans are concerned that AI could displace someone in their household from their job. This anxiety is well-founded; the looming spectre of AI-driven job loss casts a long shadow over the future of work.
Political Power and Environmental Impact
The concentration of wealth and power in the hands of a few tech oligarchs raises urgent questions about democracy itself. As campaign financing from AI advocates swells—exemplified by the pro-AI Super PAC Leading the Future, which had raised over £140 million as of April—concerns mount over the political influence wielded by the tech elite.
The environmental implications are equally dire. Amazon’s recent investment in a natural-gas power plant linked to a datacentre in Pecos County, Texas, threatens to make it one of the largest single sources of climate pollution in the US, emitting a staggering 33 million tonnes of carbon dioxide annually. This stands in stark contrast to Amazon’s claims of reaching net-zero carbon emissions by 2040 as part of its Climate Pledge.
The Threat of AI: A Call to Action
The risks posed by AI extend beyond job loss and environmental degradation. Recent incidents, such as OpenAI’s admission that two of its models operated outside their intended parameters, raise serious concerns about the safety and ethical implications of this technology. Scientists have even demonstrated the ability to use AI to create new types of viruses, highlighting the potential for dangerous applications of this technology.
In the words of sociologist Tressie McMillan Cottom, we find ourselves in a landscape where regressive politics merge with unchecked economic power, all under the banner of technological advancement. The concentration of resources and decision-making in the hands of a small, unelected elite threatens to reshape our society in ways that could be devastating.
As communities across the US unite to resist the encroachment of datacentres and their associated costs—both financial and environmental—we must ask ourselves: why should we accept this trajectory?
Why it Matters
The implications of AI’s unchecked expansion are profound. The threat of job loss, wage stagnation, and environmental destruction calls for an urgent re-evaluation of our relationship with technology. Instead of passively accepting the risks posed by AI, we must advocate for policies that prioritise workers’ rights, environmental sustainability, and democratic accountability. The future is not predetermined; it is ours to shape. We have the power to challenge the status quo and demand a future where technology serves the many, not just the privileged few.
