AI Job Market Impact Overstated, MIT Economist Warns

A recent analysis by MIT economist Daron Acemoglu suggests that the anticipated AI takeover of the job market is exaggerated, predicting that only 5% of jobs will be replaced or significantly aided by AI in the next decade, New York Post reported on Wednesday.

Acemoglu cautions that this limited impact could lead to substantial financial losses for companies that have invested heavily in AI technology, with major firms like Microsoft and Amazon spending over $50 billion on AI in the second quarter alone.

He argues that current AI systems remain too unreliable for widespread adoption in both white-collar and blue-collar roles. If unchecked spending continues, Acemoglu warns of a potential “AI winter,” where tech stocks might crash as enthusiasm wanes. This sentiment echoes concerns from other experts who foresee a looming AI bubble reminiscent of the dot-com era, potentially destabilizing the economy.