Meta's Muse AI agent is fueling discussions on how artificial intelligence may transform jobs. By completing tasks faster and boosting productivity, AI could reduce the need for some roles, potentially leading to layoffs in certain industries. However, Apollo Global Management chief economist Torsten Sløk cautions against viewing AI solely as a source of labor displacement, noting it could also spark new products, businesses, and job opportunities.
This debate arises amid significant layoffs from major companies this year. Block cut about 40% of its workforce, and Amazon, Dell, Oracle, Coinbase, Cloudflare, and Meta have also reduced staff. Uber plans to cut 10% to improve efficiency. Despite these cuts, the U.S. labor market continues to grow, adding approximately 640,000 net nonfarm payroll jobs through August, averaging about 80,000 per month.
AI may reshape employment rather than simply eliminate it. Gartner projects that by 2029, around 30% of workers displaced by AI may need to be rehired, often at higher costs, suggesting a shift toward roles with different or more advanced skills as businesses adapt to AI-driven changes.
Muse represents a significant opportunity for Meta. The AI agent saw 2.8 million downloads across the U.S. and Canada in its first 12 days, surpassing ChatGPT's 1.3 million downloads in the same timeframe. On September 19, Muse set a U.S. daily download record with 264,000. Its early success helped Meta’s shares rise 11.3% to $741.25, adding about $192 billion to its market value.
Expansion of Muse into enterprise markets could boost Meta through advertising, subscriptions, and transactions. The broader economic impact will depend on whether companies use AI mainly to replace jobs, enhance productivity, or create new products and services. Muse exemplifies both the risks of job disruption from automation and AI’s potential to drive new economic growth and reshape work.
