A shocking 92,000 drop in U.S. payrolls for February has raised questions about the conventional wisdom surrounding AI's impact on employment. Market watchers had expected a modest 50,000 gain, making the decline particularly jarring. This unexpected data point has prompted deeper scrutiny of whether AI is truly displacing workers or if companies are simply cutting costs to offset massive AI investments.

Brad Conger, chief investment officer at Hirtle Callaghan, which manages $25 billion for institutional clients, offers a contrarian view. He argues that companies aren't laying off workers because AI has made them redundant—at least not yet. Instead, Conger suggests firms are using AI as cover for cost-cutting measures necessitated by the enormous capital expenditures on AI technology, which Gartner projects will reach $2.5 trillion this year, up 44% from 2025.

At Conger's firm, AI adoption hasn't eliminated any positions. He emphasizes that AI excels at discrete tasks but cannot yet replace the multifaceted nature of most jobs. Meanwhile, Conger views Block's recent decision to cut 40% of its workforce as less about AI efficiency and more about correcting years of over-hiring. He contends that companies are leveraging the AI narrative to justify inevitable restructuring, using technology as a convenient scapegoat for difficult workforce decisions.