Maybe AI isn’t the real problem. Maybe it’s the economy

Reddit r/ArtificialInteligence News

Summary

The article argues that AI-driven productivity gains from automation may be undermined by reduced consumer demand due to job losses, questioning the sustainability of economic growth if fewer people have money to spend.

A company uses AI → lays off 1,000 people. Those 1,000 people now have less money. So they stop buying things: coffee, clothes, subscriptions, phones, travel, etc. Then the businesses selling those things see demand falling. So they cut costs too. More layoffs. More people with less money. It feels like we’re making the supply smarter while destroying the demand. AI can make companies more productive. I get that. But if fewer people have money to spend, who exactly are we building all these products for? Maybe I’m completely wrong. But if you’re unemployed right now, you probably understand what I’m trying to say.
Original Article

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