TAMPA, Fla. — AI revolution could reshape Tampa Bay economy as inflation concerns persist.
As Tampa Bay families continue to grapple with financial pressures heading into 2026, a new economic force is gaining momentum that could either ease the burden or create new uncertainties for workers across the region.
Artificial intelligence is emerging as a significant factor that economists say could fundamentally alter how the economy functions, potentially boosting productivity while simultaneously threatening traditional job growth.
"It seems like we could be getting this interesting paradox where we're having higher levels of economic growth in terms of output, but it's not really being enjoyed or reflected in the actual job growth numbers," said Dr. Chris Jones a professor of economics at the University of South Florida and president of Florida Economic Advisors.
The concern centers on what economists call "creative destruction" – a process in which new technologies transform the economy but eliminate demand for certain jobs and occupations.
"It may look like AI is artificially pushing economic output upward, but it's really coming at the expense of nominal to no job growth," Dr. Jones said.
There is a flip side to AI as well. In a recent report, Tampa Bay 28 reporter Michael Paluska has followed through in his reporting on the rise of AI and benefits to the Tampa Bay Area.
Inflation data shows mixed results for Tampa Bay shoppers
Recent federal government data reveals a complex picture for Tampa Bay area consumers. While egg prices dropped 20% year over year, beef prices surged more than 16%, and coffee increased roughly 20%. Overall, food prices rose 2.7%.
President Donald Trump, speaking last week at the Detroit Economic Club, touted his economic policies and promised to unveil additional plans in the coming weeks to restore affordability.
"Under our administration, growth is exploding, productivity is soaring, investment is booming, incomes are rising, inflation is defeated," Trump said.
Dr. Jones remains cautiously optimistic that inflation will stay below 3%, though he warns about potential impacts from tariffs.
"There are a few concerns that the tariffs that the President imposed during the summer and continues to adjust as he moves along, that it will actually be in early to mid-2026 when you start seeing some of the full impacts of prices going up," Dr. Jones said.
Economic transformation could span generations
Dr. Jones believes the current period represents a remarkable shift in economic history, with economists broadly agreeing the economy is undergoing a 50- to 100-year transformation.
"We are at a very critical point, not only from a labor force, but from an educational perspective, in terms of what we need to be teaching our future labor force," Dr. Jones said. "We now kind of need to start thinking about 22nd-century jobs at the end of the day."
Looking ahead, Dr. Jones predicts 2027 will be a pivotal year for the U.S. economy, though questions remain about whether job growth can keep pace with economic output.
"I think one of the things that's going to be really interesting to see this year is, do we keep pace with job growth, or do we struggle to stay under 5% or 4%, and the Fed didn't lower rates," Dr. Jones said.
This story was reported on-air by Tampa Bay 28 reporter Michael Paluska and converted to this platform with the assistance of AI. Paluska and our editorial team verify all reporting on all platforms for fairness and accuracy.
Share Your Story with Michael
A lot goes into the price of paradise and Michael Paluska focuses on every aspect. From the job market and housing to how Florida’s growth impacts our state’s wildlife. Send Michael tips to keep these important conversations going.
.
26-year-old Manatee County woman survives workplace shooting after being shot 4 times
Summer Freitag was working at a lab processing center when she witnessed a deadly shooting on Thursday, Jan.15.
