Torsten Slok
Coverage of Torsten Slok in the Nexus archive.
- AI’s productivity gains are years away, but if it doesn’t deliver, it could make unsustainable debt levels even worse, Deutsche Bank economist says
Deutsche Bank economist Jim Reid states AI's productivity gains are years away, with current data showing no significant economic impact. If AI fails to deliver, it could exacerbate global debt issues. Apollo's Torsten Slok warns of potential market repricing if AI investments underperform.
- Top economist says AI just hasn’t delivered on the productivity hype—and it means a ‘painful repricing’ of markets is very possible
Top economist Torsten Slok warns that AI has not yet delivered widespread productivity gains beyond tech companies, creating a risk of market repricing if returns on AI investments fail to materialize. He highlights regulatory and integration challenges slowing AI adoption in most sectors, with data showing profit margins for non-tech firms lagging behind tech giants like the Magnificent Seven.
- Slok Says ECB Hike in September Is Possible Despite Energy Drop
Torsten Slok suggests the European Central Bank (ECB) may raise interest rates in September despite a drop in energy prices.
- The most reassuring argument about AI and jobs quietly explains why Gen Z can’t get one
Wolters Kluwer, a Dutch software company, argues AI won't eliminate jobs due to the 'lump of labor fallacy' and Jevons Paradox, explaining AI shifts tasks rather than replaces jobs. Legal teams now seek AI-trained junior professionals to validate AI outputs and manage workflows, as efficiency gains increase client expectations rather than reduce demand for services.
- Gen Z graduates are blaming AI for their unemployment woes when they should be looking somewhere else
Gen Z graduates are blaming AI for their unemployment, but economist Torsten Slok argues factors like Fed tightening, trade-war uncertainty, and slowing immigration are more significant. Unemployment for recent graduates remains at 5.6%, higher than the 4.2% rate for all workers, with the gap emerging before ChatGPT's release. Companies' mixed messaging on AI is fueling Gen Z's job insecurity.
- Tokens are getting cheaper, but companies are spending even more on AI as a result, top economist warns
The cost of AI tokens has dropped over 90% since 2023, but corporate spending on large language models has doubled, driven by increased usage despite lower unit costs. Economists warn this reflects Jevons paradox, where efficiency gains lead to higher overall consumption, as companies automate more workflows and deploy AI extensively.