AI’s modest economic boost, but massive job shakeup looms, economists warn
rtificial intelligence (AI), while seen as a growth catalyst, is poised to bring societal destabilization, as experts anticipate job losses.
By Cybernews
Economists say the global economic outlook has worsened due to rising economic nationalism and tariff volatility. Artificial intelligence (AI), while seen as a growth catalyst, is poised to bring societal destabilization, as experts anticipate job losses.
- AI is expected to provide only a modest boost to global economic growth
- Most economists predict significant net job losses due to AI
- Key risks include societal destabilization, job disruption, and threats to industries like publishing
“AI is poised to drive the next wave of economic transformation, unlocking significant growth potential but also introducing serious risks,” the latest Chief Economists Outlook report by the World Economic Forum reads.
Economists are divided on how much AI will contribute to economic growth. Nearly half say the contribution to global real GDP will be modest (0–5%) over the next decade, while one-third project economic gains of 5–10%.
However, concerned voices appear to be louder than optimistic ones. Half of the economists expect net job losses, while only 19% anticipate net job gains.
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Experts are also concerned about the misuse of AI for disinformation, societal destabilization, concentration of market powers, and disruption of existing business models.
When it comes to the disruption of existing business models, publishing is the first industry that comes to mind. With Google reigning over the online sphere, publishing houses are sounding the alarm as tech giants’ tools — like AI Overviews — are suffocating them.
According to the report by SEO veteran John Shehata, 25-40% of mid-tier publishers will cease to exist in 18 months. Why? Well, Google, which is dominating the market, is pivoting to AI-first search. This means that publishers are losing traffic and, therefore, revenue.
“The math is brutal: fewer clicks mean fewer ad impressions, which directly translates to revenue collapse for publishers dependent on programmatic advertising. Publishers report revenue drops 2-3x faster than traffic decline due to reduced engagement quality from AI Overview visitors,” he writes.