Wall Street Has AI Psychosis (www.wired.com)

Alap Shah, a previously obscure financial analyst, coauthored a provocative report titled “The 2028 Global Intelligence Crisis” with the research firm Citrini, predicting significant negative economic impacts from AI by 2028, including a rise in unemployment to over 10%. Following its release, the report triggered a notable drop in the Dow Jones, erasing 800 points and highlighting Wall Street's growing anxiety about AI’s potential disruption. The broad concerns echo sentiments from tech leaders, like Anthropic's Dario Amodei, who foresee large-scale job losses in white-collar sectors due to AI. While the report gained immediate attention, it faced considerable criticism for its speculative nature and lack of robust economic grounding. Critics argue that the historical resilience of economies amid technological shifts counters Shah's bleak predictions. The report suggests that AI could render traditional services unnecessary, exemplified by a shift from platforms like DoorDash to AI agents finding optimal solutions for consumers directly. However, DoorDash's representatives reaffirmed their ongoing success with AI integration, dubiously questioning the report's conclusions. As the market grapples with these emerging sentiments, the uncertainty surrounding AI’s economic impact remains a focal point of concern for investors and a topic for further debate in the coming years.