9 hrs ago
Bessent Says AI Could Fuel U.S. Startup Boom
Scott Bessent says artificial intelligence could make it easier for people to start small companies.
Some businesses may need only a few workers because AI can perform certain tasks.
He thinks this could lead to many more startups in the United States.
Companies in industries such as farming equipment, medicine and manufacturing told the G20 they were using AI in their supply chains.
Bessent said those companies reported that AI was helping increase employment.
He also said AI companies have not clearly explained how ordinary people will benefit.
People are worried about fast changes and the construction of many data centers.
The G20 said AI should be developed safely while allowing its economic benefits to grow.
Treasury Secretary Scott Bessent said AI is helping some small businesses operate with fewer employees.
He predicted AI could drive a startup boom by enabling one- to three-person companies to replace businesses needing 15 to 20 workers.
Bessent criticized AI companies and data-center operators for poorly explaining the technology’s benefits to Americans.
He said businesses at the G20 reported AI was increasing employment and improving supply-chain operations, though he provided no figures.
The G20 called for responsible AI adoption, stronger cyber resilience and rules protecting financial stability while supporting innovation.
- Who
- Treasury Secretary Scott Bessent, G20 finance ministers and private-sector companies using AI.
- What
- Bessent said AI could trigger a U.S. small-business startup boom, raise productivity and eventually reduce inflationary pressure.
- Where
- The remarks were made in Asheville after the G20 finance ministers’ meeting.
- When
- Bessent said he expected productivity benefits to begin appearing within six months.
- Why
- He said AI can reduce the number of employees needed to start and operate some companies, but companies must better explain how its benefits will be shared widely.
Potential Benefits
Public Concerns
Startups and employment
Potential Benefits
Bessent said AI is enabling smaller companies to operate with fewer people and could produce a startup boom; companies at the G20 also reported increased employment.
Public Concerns
The article does not provide employment figures or identify the companies behind those reports, leaving the scale of the effect unclear.
Economic gains and public trust
Potential Benefits
Bessent said AI investment could become productivity growth and reduce inflationary pressure, with benefits potentially appearing within six months.
Public Concerns
He acknowledged concern about rapid AI infrastructure construction and said AI companies and data-center operators had done a poor job explaining how benefits would reach ordinary Americans.
Innovation and regulation
Potential Benefits
The G20 said countries embracing responsible AI development, adoption and diffusion could lead global growth.
Public Concerns
The G20 also called for stronger cyber resilience and regulatory frameworks to protect financial stability and address sector-specific risks.
Key facts
- Speaker
- Scott Bessent, U.S. Treasury secretary
- Potential effect
- AI could enable one- to three-person companies to operate where 15 to 20 workers were previously needed.
- Businesses represented
- Pharmaceutical, farm-equipment and industrial companies discussed their AI use.
- Reported employment effect
- Bessent said participating companies reported that AI was increasing employment, without providing figures.
- Expected timing
- Bessent said productivity benefits could begin appearing within six months.
- G20 position
- The G20 described AI as a general-purpose technology with potentially profound effects on the global economy.
- Risk safeguards
- The G20 called for responsible adoption, stronger cyber resilience and regulatory frameworks protecting financial stability.
Quotes
Scott Bessent
US Treasury Secretary speaking to reporters after the G20 finance ministers’ meeting
“I think that the AI companies, whether it is the builders of the data centres, whether it is the labs themselves, have done a horrendous job, horrendous job of explaining themselves to the American people.”
thehansindia.com
“We are seeing AI result in a massive increase in small business start-ups, because you’re seeing the one, the two, the three-person company that would have taken critical mass, 15 or 20 people”
thehansindia.com
Sources
Related news
Mark Zuckerberg Predicts More Jobs Even as AI Transforms Workplaces
Bessent Says US Could Control 80% of Global Computing
Rajan Proposes AI Tax as Firms Confront Potential Job Losses
AI Reshapes Jobs, Sparks New Solo Startups
Bill Gates Urges Token Tax as AI Threatens Jobs
Sam Altman Says AI’s Benefits Are Overshadowed by Fear
Indian Firms Invest $40 Billion in U.S., Supporting Jobs
Trump Aides Seek Quiet Iran War Before Midterm Elections
Global Bond Sell-Off Pushes Japan Yields To 30-Year High
US and China Hold Quiet Talks Over Iran Conflict
Trump-Xi Talks Expected to Address AI Guardrails
