How AI agents could destroy the economy

Citrini Research published a scenario detailing how agentic AI could lead to mass economic destruction within the next two years, projecting doubled unemployment and a stock market value drop exceeding one-third. The mechanism described is a negative feedback loop where improved AI capabilities lead to fewer workers needed, increased white-collar layoffs, reduced spending, and further investment in AI, with no natural brake. This scenario focuses on the gradual unspooling of the economy resulting from integrating AI agents, particularly replacing outside contractors with cheaper in-house AI, affecting any business model optimizing inter-company transactions. While the report is causing a stir and is presented as a scenario rather than a firm prediction, its plausibility stems from the idea that many impacted decisions are already outsourced to contractors.

(Source：TechCrunch)