A Massachusetts Institute of Technology (MIT) economist warned that the current artificial intelligence boom may only significantly impact 5% of jobs over the next decade. He predicted that companies investing heavily in AI may face challenges ahead.
Daron Acemoglu, a professor of economics at MIT, outlined three potential scenarios for the future of AI, forecasting a combination of a market crash and job cuts that could lead to economic turmoil.
In the first scenario, the excitement surrounding AI gradually diminishes, prompting businesses to focus on more practical applications of the technology.
The second scenario warns of a growing AI bubble, which could result in a sharp crash in tech stocks and widespread disillusionment among investors.
The third and most concerning scenario predicts an unchecked AI frenzy that leads companies to cut jobs, only to scramble to rehire when the technology fails to meet expectations.
Acemoglu emphasizes that current AI models, such as ChatGPT, while impressive, still lack the reliability and human judgment necessary to replace many roles across various sectors.
In just one quarter of this year, Microsoft, Alphabet, Amazon, and Meta collectively spent over $50 billion on capital expenditures, much of it directed toward AI initiatives.
