AI Job Panic Still Outruns the Evidence | American Enterprise Institute– www.aei.org

Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, both Democrats, have proposed pausing new data center construction until federal safeguards for workers, consumers, and the environment are in place. Given how far Congress is from passing comprehensive AI legislation, the proposal could stall new projects for years. It reflects deep concern about AI’s economic and social impact—but rests on an ASAP sense of urgency that outpaces the best current evidence on how quickly those effects are materializing.

What do we know right now about the job impacts of the emerging AI revolution, given the rising level of concern in Washington? Some recent analysis for consideration on Capitol Hill:

• Challenger, Gray & Christmas tracked more than 1.2 million layoffs in 2025. According to The Wall Street Journal, citing Forrester, fewer than 100,000 were primarily attributable to AI-driven efficiency gains. Even that likely overstates the impact. Companies have an incentive to blame AI for cuts because it signals technological sophistication and can lift their stock prices. From the piece: “The most likely reasons for head-count reductions remain the same as ever: slower sales, shifting priorities and previous overhiring.”