New troubles for the “Artificial Intelligence Capital of the World”: The AI ​​craze cannot create a large number of jobs

As artificial intelligence becomes a hot topic around the world, San Francisco in the United States, which has the highest density of AI talents in the world, has ushered in a wave of enthusiastic investment and entrepreneurship - just like the Internet boom twenty years ago.

However, just when San Francisco was fully expecting the "artificial intelligence revolution" to refill the downtown commercial real estate and help the city regain its pre-epidemic economic vitality, the situation has undergone new changes: According to reports, the situation that has touched San Francisco in the past has Unlike technology booms, the AI ​​boom has created fewer job opportunities because companies in the AI ​​industry are good at staying lean and automating work.

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As the "Global AI Capital", San Francisco has the highest density of artificial intelligence talents in the world. 11 of the top 20 AI companies in the United States are located here, attracting a total of US$15.7 billion in investment from 2008 to 2023. .

But these companies employ a total of 3,400 people in San Francisco, according to San Francisco Mayor London Breed’s office, which relied on data from venture capital firm NFX. Downtown San Francisco is expected to lose nearly 150,000 office jobs throughout the pandemic and has responded accordingly. Before the epidemic, office workers contributed nearly three-quarters of San Francisco’s GDP.

Generative AI has completely changed the daily work of software engineers, the main workforce in the San Francisco technology industry. According to a survey by GitHub, the world's largest code platform, 92% of software developers use AI, and programmers who use GitHub's generative AI assistant complete tasks 55% faster.

Regarding this situation, Erin Price-Wright, a partner at Index Ventures, a San Francisco investment institution, bluntly stated that these AI companies will almost certainly not have thousands of employees and company cafeterias like Airbnb or Dropbox. These two public companies alone employ nearly 10,000 employees in San Francisco.

For comparison, OpenAI, backed by Microsoft, is headquartered in San Francisco's artistic Mission District. It has received a total of US$11 billion in investment in the past eight years, but has only 500 employees. According to people familiar with the matter, OpenAI will train its own AI to help employees respond more efficiently when faced with problems.

In response, an OpenAI spokesperson responded that the company will use its own products to help work, but is also actively recruiting for positions including customer support.

Matt Schlicht, CEO of artificial intelligence startup Octane AI, excitedly said: "We are reaching a stage where AI can work like real employees. In your lifetime, there is a good chance that you will witness a team building a value company. Billion dollar business.”

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In early June, Mike Grabowski, who founded an AI influencer blog generator in the Middle East, lamented on social media that in San Francisco, there were 44 AI-related events in just two weeks, an average of 3 events a day. The frequency continued throughout June, and Grabowski's own event received 560 applications.

(Source: Social Media)

Source: Financial Associated Press

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