Economists warn that corporate AI adoption is approaching the "Cortes moment," which could reshape the labor market

DeepFlowTech · 2026-03-04T02:39:43+00:00

Moody's Analytics Chief Economist Mark Zandi warns that U.S. companies are approaching an "Cortes moment" in the AI sector, which could reshape the labor market. Although productivity gains have not yet been observed, significant investments are now irreversible. The increase in layoffs has raised concerns, and Zandi predicts that AI could potentially drive productivity growth, but the healthcare industry remains a buffer for employment.

DeepFlowTech

2026-03-04 02:39:43

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Deep Tide TechFlow News, March 4th, reports that Moody’s Chief Economist Mark Zandi warned that U.S. companies are approaching an “Cortes moment” in the AI field—an irreversible commitment point, analogous to the historical event in 1519 when Spanish conquistadors burned their ships and had no retreat but to move forward. Zandi pointed out that although current data does not yet show productivity gains from AI, companies have made irreversible commitments through substantial investments and structural adjustments, which could rapidly reshape the U.S. labor market.

Fintech company Block recently announced a 40% layoff, raising concerns that other companies may follow suit. Currently, technical job vacancies are decreasing, overall hiring is weak, and the layoff rate has reached its highest level since 2009. Zandi predicts four possible scenarios for the future, with the most likely being steady growth driven by AI productivity gains, but also warns that the healthcare industry is currently the last buffer in the employment market.

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