AI Unleashed: How a Doomsday Report Shook Wall Street

A recent story warned that smart machines could break the economy.

AI can do everything people used to pay for, from coding to food delivery.

1. Software Firms Under Pressure

• Long contracts become fragile as AI tools like Claude and Codex lower costs.
• Customers switch to personal bots, reducing sales for companies such as Oracle and Monday.com.

2. Office Jobs Vanish

• Workers unable to find new roles drift into gig work, earning less.
• Lower wages shrink consumer spending → more layoffs and further AI adoption.

3. The Crash Spreads

• Lenders betting on future software profits lose when those firms fail.
• Banks suffer losses; people may miss mortgage payments.
• A vicious cycle: layoffs → lower spending → more AI investment → more layoffs.

4. Government Revenue Declines

• The tax system, built on human work, loses revenue.
• While big AI firms still profit, the underlying real economic activity shrinks—the so‑called “ghost GDP.”

5. Call to Action

We need new rules for a world where the most useful tool is cheap and abundant.

If we act slowly, a 2027 crash could wipe out half of the S&P index.