Raimondo on AI Race and Worker Transition

Former U.S. Commerce Secretary Gina Raimondo discussed the complex relationship between artificial intelligence development, economic impact, and worker adaptation in a recent Bloomberg Talks appearance. Leading the nonpartisan organization RaiseUs, Raimondo emphasized the critical need for a national strategy to ensure American workers benefit from the AI revolution, rather than being displaced by it.

The AI Buildout and Public Anxiety

The conversation touched upon the growing political flashpoint surrounding the AI buildout, specifically highlighting New York State's decision to issue a moratorium on new hyperscale data centers. This move, along with reports that data centers have increased supply costs by over 60%, signals public concern about the energy demands and economic consequences of rapid AI expansion. Raimondo acknowledged these anxieties, stating, "Americans are worried. When the average American hears AI, what they hear is, 'I'm going to lose my job. My electricity prices are going up. My kids won't have a job.'"

RaiseUs's Mission

Raimondo outlined the mission of RaiseUs: to ensure the U.S. leads in the global AI competition while simultaneously bringing every American worker along. She expressed deep concern that the current trajectory is not aligned with this goal. "We have extremely outdated infrastructure, social insurance, support for workers, incentives for companies to retrain and redeploy instead of just laying people off," she noted. RaiseUs aims to collaborate with governors from both parties, companies, and other stakeholders to find creative and innovative solutions for worker transition and retraining.

The full discussion can be found on Bloomberg Podcast's YouTube channel.

The Risk of Losing the AI Race

A significant concern for Raimondo is the potential for mass unemployment due to AI adoption. She warned that even with superior technology, if the U.S. lacks an intentional plan for managing this transition, widespread job losses could lead to economic and political destabilization. "If we wake up in a couple of years with millions or tens of millions Americans put out of work because of AI, we will lose the global AI race because that will be too destabilizing," she stated.

A 'Grand Bargain' for AI

Raimondo called for a new 'grand bargain' between the public and private sectors regarding AI. She commented on proposals, such as those considered by the Trump administration and initiated by the Biden administration, for the government to take equity stakes in AI companies. While she agreed with the principle of the American people sharing in the benefits of AI, she expressed reservations about direct government ownership of companies.

"Personally, I have always been a bit of a critic on the government taking big equity shares of companies," Raimondo said. "I'm still a believer in capitalism, however many flaws it has right now and the way it's playing out in America. And I just, you know, the government owning the means of production is, you know, the definition of socialism. I think it's creates a lot of problem potential for corruption." She stressed the need to find alternative approaches.

Balancing Competition and Inclusion

Addressing the competitive aspect of the AI race, particularly with China, Raimondo emphasized that maintaining a U.S. edge should not come at the expense of its own workforce. She believes that focusing solely on technological advancement without a corresponding people strategy risks a backlash that could undermine progress. "If we as a nation put our blinders on and every company just moves forward at pace to implement AI to increase profits without a people strategy... you're going to continue to see what you just asked me about moratoriums on data centers, other kinds of uprising. And that's bad for America. That's bad for everyone in America," she concluded.