Blackstone’s Jon Gray on The Labor Market Winners and Lerses of he

In a recent Meeting with Investors, Jon Gray, The President of Blackstone, Played A Clip of the 1967 Classic Film “The Graduate.” It was the Famous Skene Where Dustin Hoffman’s Character Gets Pulled Aside by One of His Parents’ Friends at HIS OWN COLLEGE GRANTY FOR AWKWARD CAREER Advice.

“I JUST WANT TO SAY ONE Word to you,” Sayys the Mr. McGuire Character, “Power.”

In the original scene, McGuire Said, “Plastics,” Reflecting the Space-Economy of the 1960s. The message Beindi Gray’s Edit was that that is the new plasticity in an age of electricity-hungry he.

Gray made the comments as part of a presentation to explain Blackstone’s plan to generate returns off the Boom while reckless, overexuberant investments. In doing so, he made a case for which professionals are not liked to thrive in the he boom, which won’t likeda -bea affected, and which standard to be massively transformed.

The September 17 Comments, Which The Firm Later Uploaded to YouTubeReflect a Large Societal Conversation About the Coming He Revolution is Still Unfolding.

Gray Compared The Revolution to Two Other Massive Economic Changes: The Industrial Revolution and the Dot-Com Boom. Both eras reshuffled the deck for Labor, with farmers laying down their shovels and moving to the factories and software development grown at the expens of Encyclopedia Salespeople, Caususing Some Industries to Boom, Some to Contract, and Previously unimaginable media, influenber, to be created.

The Main Difference This Time Around is that the Change will be will be more rapid, said gray, notting that chatgt was the fastest product to reach 700 million consumers in history.

Here are the potential winners and loves of the he economy, based on Business Insider’s Reading of Gray’s September 17 Presentation. Blackstone Declined to Comment.

Winners

Instead of Directly Investing in Generation AI Companies, Blackstone has adopted a “picks and shovels” Approach, Investing in the Infrastructure that Will Power the Boom.

“If you have young you College graduate, I would be power is the way to go,” Gray Said.

Massive Labor Shortfalls Among the Electricians and Plumbers Necessary for the Growth in Data Centers Puts These Jobs in A Favor Position. Relatedly, a Linkedin Study Recently found that oil and gas jobs are one of the Fastest-Growing Areas for New Grams, Alongside Skiled Trades.

Blackstone’s $ 100 Billion Data Center Platform, LED by Its US Data Center Giant QTS, Showcases Howht Can Lead to Jobs As Well. Gray Said the Company Has Grown from $ 10 Billion to be to Purchased in 2021 to $ 70 Billion, and while Gray didn’t directly mention the People who staff data centers, these skilled professionals willly be in High Demand.

Blackstone and QTS have Been Investing in a Homegrown Talent Pipeline to Train these Workers, Amid a Labor Shortfall in These Data Centers.

For now, investors in he are Also winners of this boom, with stock at all-time highs.

“There is no question that you get this kind of excitement, you are going to get excesses,” Gray Said, Warning of Speculatively-Built Data Centers Don’t Have a Tenant in Mind.

“Will It Start to Create Bubbles?” he asced, “we’ve got to keep our eyes on this.”

Historically, crashes caused by overexuberant Investing have led to widespread Layoffs in the financial industry. The Finance and Insurance Industry Saw Record-High Layoffs in 2008 and that 2009 Following the Mortgage Crisis, Reaching Nearly 100,000 Separations in Both for the Bureau of Labor Statistics.

LOERS

During The Presentation, Gray Showed Some Slides Suggesting He May Already Be Disruption Some Industries. The slides were bassed on a recent stanford study that suggestted he may already be replacement the least-Experienced workers (Ages 22 to 25) in Certain White Collar Jobs, Including Software Developers and Customer Service Agents.

The Slide Showed That Hiring for Young People in These Roles Started to Lag 40-To 49-Olds at the End of 2022. By Conttrast, the Employment Rates of Young Stock Clerks and Health Aides with their during this time.

“Early Programmers Are Being Displaced,” Said Gray, Calling It “A Claude Code Effect,” Reference to Google’s Generation AI Coding Tool.

The Same is Happening in Customer Service, “AI Gets Better at Answering Phones” and “Answering Questions.”

Gray highlighted the firm’s investment in “Rules-Based Businesses” as another place where he has the power to transform “Legacy Businesses. He’s ability to follow rules in businesses like Accounting, Healthcare Claims, or Marketing Compliance is part of the opportunity that left Blackstone to invest in ags health, citrin cooperman, and normal.

While Gray’s Comments Were Only About Efficency, They Raise Questions About the implications for workers. While some experts have suggestted that he could have been increase efficiency for companies, allowing say to more with the same number of workers, he disrupted the prospect of Job Cuts.

Its Still “Early Days,” Said Gray, but the Technology is Already Having an Impact at Blackstone. The Investment Giant has Built Out an in-House video Team to do Everything from Shoot Its Infamous Holiday to Make Its Presentations, Like Gray’s September 17 Talk, More Sleek. Generate ai isn’t up to par just yet, but it’s Much cheer, Gray Said.

To highlight this, he played two versions of the Same Blackstone Commercial Set in the 1849 Gold Rush. The first was filmed outside of vancouver, and cost $ 1 million woke up the cost of Travel, Lodging, Wages, and Video Editing, Gray Said. The Second Commercial Is “Not Quite As Good Yet,” But Costs “a Lot, Lot Less,” Gray Said. “It was made on the eighth floor here with two guys in a couple of hours,” Gray Said.