Credit Rating Firm Says the Economy Is About to Be Obliterated
"AI has advanced so far that the complete disruption of the economy is all but certain." The post Credit Rating Firm Says the Economy Is About to Be Obliterated appeared first on Futurism .
Credit rating firm Egan-Jones recently sounded an alarm about the imminent collapse of the economy due to artificial intelligence (AI). In a commentary titled “It’s Over,” the firm boldly declared that AI is on track to completely disrupt the existing economic system. According to the firm, "AI has advanced so far that the complete disruption of the economy is all but certain, and firms that sell expertise by the hour, senior talent included, are first in line."
The firm predicts that the economy will experience compressed margins in professional services, lower returns for venture capital firms, and a short-term decline in home prices as screen-based jobs are replaced by AI. The industry's top figures, such as Elon Musk, Dario Amodei, and Mark Zuckerberg, have signed a pledge to self-regulate and avoid building AI models that could threaten humanity.
However, Egan-Jones believes that the AI models of today have reached a level of quality and speed that makes widespread adoption inevitable. As a result, the firm expects companies to use AI to optimize their operations and for startups to grow with fewer resources, leading to a deflation in the value of money and a decrease in the returns of venture capital firms.
Furthermore, AI will have a significant impact on consulting firms and other professional services, as AI chatbots can now provide advice without the need for human consultants. Some consultancies are already cutting back on staff due to AI-related layoffs. While Egan-Jones is a lesser-known credit agency and its predictions may not carry the same weight as the three major agencies, the firm's warning highlights the potential economic consequences of AI's rapid advancements.
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