The indications that AI might result in widespread job displacement are mounting: U.S. entry-level job postings have decreased by 35% since 2023, mass layoffs have affected Big Tech, and even AI leaders are voicing concerns about potential disruptions.
At the Axios AI Summit in Washington, Sen. Mark Warner shared that a venture capitalist is devaluing software investments due to advancements from Anthropic’s Claude, and a major law firm isn’t hiring first-year associates since AI can manage work typically assigned to junior lawyers.
Warner notes the palpable fear of AI-related job loss, despite some data suggesting it hasn’t yet taken jobs. The growing anxiety is sparking debates over financial responsibility for these changes.
Warner proposes taxing data centers fueling the AI boom and using the revenue to support workers through the transition. Though not yet formalized into legislation, the idea reflects increasing public anger towards AI and data centers.
Nationwide, there’s resistance to data centers, exemplified by a bill from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, advocating a data center moratorium. Concerns focus on noise, pollution, and rising electricity costs, alongside fears of job replacement.
Warner doesn’t support the moratorium, arguing it would allow China to advance faster. He emphasizes that AI and data centers are here to stay and suggests communities could gain compensation to address job loss concerns.
The concept is not unprecedented. For instance, Henrico County, Virginia used data center tax revenue for an affordable housing project. Warner stresses the importance of linking data centers to community benefits to prevent public backlash.
The public sentiment aligns with Warner’s view. An NBC News poll shows AI has a lower approval rating than ICE, with 46% of voters viewing AI negatively. In Virginia, there’s a proposal to repeal tax breaks for data center development due to significant tax revenue losses. Warner believes other states might consider similar actions.
AI and data centers, he concludes, are “easy to demonize.”