AI Poses a Severe Threat to the US Economy: Unemployment Could Exceed 10% and Markets May Crash by 2028.

Forecast on Artificial Intelligence Technologies in the US

According to TSN.ua: A report from the Citrini Research Institute of Economic Studies warns that artificial intelligence could trigger a severe economic crisis in the United States. Titled '2028: The Global Intelligence Crisis,' the report was published on February 23. It projects that AI may eliminate more old jobs than it creates, leading to significant economic consequences. This forecast adds to a growing global debate about the societal impact of rapid technological advancement.

The analysis indicates that office workers and the service sector will bear the brunt of these technology-driven changes. Economists emphasize the scale of the challenge, noting that

"for every new job created by AI, dozens of old ones become redundant."

The report predicts the unemployment rate could climb to 10.2%, while the S&P 500 index might plummet by 38% before 2028.

Impact on the Labor Market and Economy

Amid these projected economic shifts, technology stocks have already experienced substantial losses. For instance, IBM shares plunged 13%, while stocks of companies like Datadog, CrowdStrike, and Zscaler each lost 9% of their value. This market volatility suggests investors are beginning to price in the potential negative effects of widespread AI adoption.

Experts caution that

"the social structure is crumbling faster than the legislative process can advance."

This highlights the urgent need for societal adaptation to new economic realities, where economic activity that fails to benefit society is termed 'phantom GDP.' Consequently, the challenges posed by AI could become a serious threat to US economic stability. The transition's success will largely depend on proactive policy and corporate strategy.

Given these forecasts, it is crucial for governments and businesses to develop strategies to mitigate the potential negative impacts of automation and AI implementation. The relevance of professional training and worker retraining becomes paramount as the labor market undergoes a transformation demanding new skills and knowledge. While technological development may also unlock new opportunities for innovation, society must be prepared for the profound economic changes underway.