Commerce official says lack of AI adoption poses greater risk than job displacement

A senior advisor at the U.S. Department of Commerce argued that the primary risk of artificial intelligence is not workforce displacement but the opportunity cost of failing to adopt it strategically. Speaking at the GovExec Infrastructure and Modernization Forum, Senior Advisor for Technology and Strategy Matheus Passos said the focus should be on whether organizations will "become obsolete if they don't embrace AI as a whole," rather than whether individuals will be replaced by AI.

Passos emphasized that the future of AI belongs to those who invest in and operationalize the technology. He added that Commerce’s approach includes an internal AI Integrated Product Team (IPT) that brings together IT and business stakeholders to guide AI adoption across the agency. This team meets weekly to assess AI initiatives and escalate concerns, such as potential impacts on the 2030 U.S. Census.

The Commerce Department’s strategic AI efforts follow a $4.1 billion blanket purchase agreement for cloud computing released in April, aimed at hyperscale providers. Passos’ comments reflect a broader federal push to modernize operations through AI, framing adoption as a competitive necessity rather than a discretionary upgrade.