Verizon (VZ) CEO Dan Schulman has a stark warning about artificial intelligence (AI).
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The head of the telecommunications giant estimates that rapid advancements and widespread adoption of AI will lead to an unemployment rate as high as 30% in the United States. Schulman says he isn’t sugarcoating the havoc that will be wreaked on the American workplace by AI.
“It’s a very difficult time, and everyone knows it is,” said Schulman in a media interview. “So I think being authentic, being realistic, telling the truth, as best you can is essential.” Other CEOs would be wise to give employees fair warning of AI’s rise in the workplace and the human job cuts ahead, added Schulman.
The Robots Are Coming
The Verizon CEO said retraining workers in order to prepare them for the inevitable incursion of AI into the workforce is critically important. To that end, Verizon has created a $20 million program to retrain 13,000 soon-to-be ex-workers and help them transition to new jobs, both within and outside the wireless internet provider.
“Verizon is the first company to set up a fund to specifically focus on the opportunities and necessary skill sets as we enter the age of AI,” said Schulman. “It is my intent to also work with other companies and the public sector to address the opportunities and challenges in a world where technology will impact all of us.” Verizon currently has 100,000 employees.
Is VZ Stock a Buy?
Verizon’s stock has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on seven Buy and 10 Hold recommendations issued in the last three months. The average VZ price target of $50.97 implies 10% upside from current levels.
