There’s a twist that explains why job creation grew with innovation:
While each company leans on fewer professionals to operate, the total number of jobs skyrockets.
Why? Because new technologies spark a surge in company creation.
Look at what happened when the Internet got created, we got many Internet companies and tech hardware companies that formed.
Then once the smartphone got invented, we have many businesses created from simply being an app (ex. Uber, Supercell, DoorDash, Reddit).
The global consulting boom (from $20B in 1990 to $900B by 2023) proves it: tools don’t kill jobs; they enable more players.
Take auditors, fewer hours per audit thanks to automation, yet demand for audits explodes as more companies need compliance.
The rise of ESG reporting and new regulations means even small firms now require audits, ballooning the profession.
Lawyers face the same: AI drafts docs, but more ventures need legal setup.
This pattern where efficiency per firm explodes drives a net job increase across these roles.
At this rate, we can say it’s expansion into uncharted territory.
Thoughts?
I met someone this week who shared that in the 90s Bain paid employees to make slides for customer presentations. This was pre-PowerPoint so the job was literally using an exacto knife and ruler to cut and splice together materials for overhead transparencies. As soon as laptops, PowerPoint and digital projectors became widespread this job went away. Somehow the consulting industry is 10x the # of employees that it was then 🤣
What Aaron is describing is how almost every technology adoption cycle has played out. No evidence to suggest AI will happen differently