AI Drives Blue-Collar Productivity Boom, Palantir CTO Says, Countering Job Loss Fears
In the ongoing debate about artificial intelligence’s impact on the workforce, Palantir Technologies’ Chief Technology Officer Shyam Sankar offered a contrary perspective to widespread concerns regarding mass unemployment. Appearing on Fox Business’s program The Bottom Line on December 17, 2025, Sankar emphasized that AI is fueling a significant productivity surge among blue-collar workers rather than causing job losses.
AI Boosts Hiring and Efficiency in Manufacturing and Healthcare
Sankar addressed fears about AI’s potentially adverse effects on employment, notably those expressed by Senator Bernie Sanders (I-Vt.), who recently called for a moratorium on AI development to prevent “massive unemployment” and protect workers’ livelihoods. According to Sanders, unchecked AI and robotics advancements threaten to eliminate millions of jobs, leaving many without income.
Rejecting this narrative as “propaganda,” Sankar pointed out that AI’s most transformative impacts are evident in frontline roles, including ICU nurses and factory technicians, not just among software developers or high-tech sectors. He explained that AI tools are enabling manufacturing foremen to focus more on production tasks rather than administrative duties like labor scheduling and planning, thus increasing productivity and operational capacity.
For instance, a manufacturing client using Palantir’s AI-driven production planning was able to add a third shift, which made it profitable to hire more American workers. "Without the improved labor utilization enabled by AI, they wouldn’t have expanded their workforce," Sankar said.
In healthcare settings, AI allows nurses to spend more time delivering critical care rather than on time-intensive data collection. This shift not only benefits patients but also supports better labor efficiency.
Retraining and Job Creation in Emerging Industries
Sankar also highlighted Panasonic Energy, a Reno, Nevada-based electric vehicle battery manufacturer, as an example of AI accelerating workforce training. Traditionally, becoming a skilled battery technician requires about three years of apprenticeship. With AI assistance, Panasonic has reduced this to just three months, enabling the company to retrain workers from other industries, such as former casino employees, and onboard them rapidly.
“This is a clear sign that AI is not replacing jobs but transforming how people are hired, trained, and deployed,” Sankar said. He considers this a potential catalyst for American industrial growth and early talent development.
Education Must Adapt to the AI Era
Looking ahead, Sankar suggested that traditional colleges will need to reinvent themselves to keep pace with evolving workforce demands shaped by AI. He described Palantir’s approach of offering technical training and fellowships to high school seniors, supplemented by part-time academic instruction provided by university professors. This hybrid model aims to equip young workers with a combination of practical skills and well-rounded education.
Balancing AI Infrastructure With Economic Value Creation
Sankar further criticized the current AI investment focus in the U.S., which heavily prioritizes the “supply side” such as data centers and model development. He argued for greater emphasis on the “demand side”—how AI can deliver tangible economic benefits and prosperity to average American workers.
“We need to invest more in how these AI models translate into value for frontline workers and everyday businesses,” Sankar said, praising initiatives like the government’s Genesis Mission but insisting that economic impact must take precedence.
Conclusion
While voices like Senator Sanders advocate caution and regulation to avoid job displacement, Palantir’s CTO presents a more optimistic picture, viewing AI as a tool that enhances blue-collar productivity, creates new jobs, improves worker training, and ultimately supports American economic growth. His insights challenge the dominant narrative that AI inevitably leads to widespread unemployment, calling instead for strategies that harness AI to empower workers across industries.
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