Photo via Fortune
Contrary to widespread fears about artificial intelligence displacing white-collar workers, Apollo Global Management's chief economist Torsten Slok argues that historical economic patterns suggest a different outcome. According to Slok, a principle known as Jevons Paradox—observed in 19th-century energy markets—offers insights into how AI adoption will reshape professional services industries rather than eliminate them.
Jevons Paradox, named after economist William Stanley Jevons, describes a counterintuitive phenomenon: when technological improvements make a resource more efficient to use, demand for that resource often increases rather than decreases. In the 1860s, more efficient coal-burning engines didn't reduce coal consumption; instead, they spurred economic growth that increased coal demand overall. The same logic may apply to knowledge work today.
If AI tools make lawyers and accountants more efficient at routine tasks, the theory suggests that businesses and individuals will seek out more professional services—not fewer. Lower costs and faster turnarounds could expand the market for legal and accounting work across Atlanta's growing corporate base, financial services sector, and emerging startups. Rather than fewer professionals, firms may need more talent to handle expanded client loads and more complex advisory work.
For Atlanta's professional services firms and their workforce, this perspective offers optimism. Rather than preparing for contraction, the region's legal and accounting communities may focus on adapting skill sets to leverage AI tools effectively. The challenge becomes ensuring professionals evolve alongside technology—positioning Atlanta's expertise as increasingly valuable in an AI-enabled economy.
