AI Will Transform Labor Market But Long-Term Employment Stable, Tech CEOs Say
Tech leaders at the Tech1 conference in Tel Aviv discussed AI's impact on employment, infrastructure, and market competition, expressing optimism for long-term job growth.
Artificial intelligence is causing immediate upheaval in the labor market, but employment issues will stabilize over the next decade, according to Asaf Peled, founder and CEO of Minute Media. Speaking at the Tech1 conference in Tel Aviv during a panel moderated by Jonathan Lavender, global markets leader at KPMG, industry executives discussed the profound impact of AI on corporations and the workforce.
"I am optimistic," Peled stated. "Throughout history, every technological revolution has sparked fears of widespread job losses. AI will stimulate economic activity, and over a five-to-ten-year horizon, employment issues will resolve themselves. While software and tech sectors will absorb immediate shocks, new roles will emerge. Our own business has grown, though we have parted ways with employees in certain operational areas."
Transformation in the Workplace
Yoni Luxemburg, founder and CEO of Elementor, echoed this sentiment, noting that his company operates with roughly 60% fewer employees due to AI integration. "AI has transformed how we work. In the long run, everything will be fine, and new roles will emerge. You cannot compare today's professions to those of fifty years ago. Regarding AI, we are only at the beginning," Luxemburg explained.
Addressing market dynamics and the anticipated IPO of Anthropic, Peled noted that many organizations are evaluating long-term scenarios. Much of Anthropic's revenue derives from a small fraction of enterprise clients, primarily tech firms. While Minute Media adopted Anthropic's Claude model last year, the rise of cheaper and free alternatives—particularly from China—presents competitive pressures.
Redesigning the Internet for AI Agents
Luxemburg emphasized that AI introduces a new economic paradigm where users will increasingly rely on autonomous agents rather than traditional websites. "The internet as we know it began in 1991, but traffic is shifting toward AI agents. When you ask Claude a question, it browses sites to provide an answer. However, the web was not designed for agents, and infrastructure must adapt," Luxemburg said.
Both executives expressed skepticism toward heavy-handed regulation. Peled argued that market forces and industry self-regulation will naturally guide the adoption of AI models without stifling innovation.
