AI Unleashed: How a Doomsday Report Shook Wall Street

A recent story warned that smart machines could break the economy. It says AI can do everything people used to pay for, from coding to food delivery. If businesses stop needing human workers, the money that feeds the economy dries up. First, software firms that rely on long contracts feel pressure. AI tools like Claude and Codex let companies do the same work cheaper. Customers switch to personal bots, so companies like Oracle and Monday. com lose sales. Second, many office jobs disappear. Workers who can’t find new roles move to gig work, which pays less. Lower wages mean people spend less money, so companies cut more staff and buy more AI. Third, the crash spreads.Lenders who gave big loans to software firms bet on future profits that no longer exist. If those firms fail, banks lose money and people may miss mortgage payments. These problems create a loop: layoffs lower spending; low spending forces more AI investment and more layoffs. The government’s tax system, built on human work, loses revenue while people need help. Some big AI companies still earn profits, making the economy look fine on paper. But real economic activity shrinks – a phenomenon called “ghost GDP. ” The story ends by warning that we need new rules to handle a world where the most useful tool is cheap and abundant. If we can’t act fast, a 2027 crash could wipe out half of the S&P index.