""When steam engines made coal more efficient, Britain didn't burn less coal, it burned more. The same pattern is happening for cheaper legal services, consulting services and financial services.""
""The Jevons paradox works when a cheaper input unlocks new demand that didn't previously exist. Steam engines didn't just make existing coal uses more efficient; they expanded the overall consumption of coal.""
William Stanley Jevons observed that increased efficiency from the Watt steam engine led to greater coal consumption, a concept known as the Jevons paradox. Apollo Global Management's chief economist, Torsten Slok, applies this paradox to AI, suggesting that as AI adoption rises, it will create more jobs rather than eliminate them. The efficiency gained from AI will lower costs in professional fields, expanding the market and increasing the number of firms and workers in sectors like law and accounting.
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