Federal Reserve officials have highlighted the dual impact of artificial intelligence (AI) on both employment and inflation, noting its potential to influence the Fed's mandate. Fed Governor Christopher Waller and Atlanta Fed President Raphael Bostic emphasized that AI is disrupting traditionally stable, higher-skilled jobs and integrating into business processes, though the full employment implications remain unclear. In the corporate sector, Indian outsourcing giant Tata Consultancy Services (TCS) announced layoffs exceeding 12,000 employees as part of a restructuring driven by AI adoption, while simultaneously increasing salaries for 80% of its staff starting September 1. Experts warn this move signals a broader AI-fueled trend that could eliminate approximately 500,000 jobs over the next three years in India's $283 billion IT outsourcing industry. In the United States, over 10,000 job cuts in 2025 have been directly linked to automation, with young tech workers among the most affected. Additionally, AI-enabled hiring practices are causing some job seekers to avoid positions in low-tech sectors, citing concerns over fairness and the lack of human interaction. The stock market is also responding to AI-related risks, with traders reportedly fleeing stocks perceived to be vulnerable to AI disruption, even as the S&P 500 rallies. Some strategists warn of a potential bubble in AI-related equities, anticipating possible pullbacks after significant gains. Overall, AI is increasingly recognized as a transformative force reshaping labor markets, corporate strategies, and financial markets.