# Feedback Loop Related Articles

Author of 'AI Doomsday Report' Speaks Out: Market Panic Exceeds Expectations, but the Real Risk is the 'Unemployment Loop'

A report on the potential AI disruption scenario, co-authored by Alap Shah of Lotus Technology Management, triggered significant market sell-offs, with IBM’s stock plunging 13% in a single day. Shah stated that the market reaction "far exceeded expectations" and warned that AI could eliminate 5% of white-collar jobs within 18 months, particularly in service-intensive sectors like insurance and banking. He emphasized a negative feedback loop: companies cut jobs to boost margins, reinvest savings into AI, and cause further layoffs. Shah urged governments to tax AI-generated profits to mitigate unemployment and protect consumer demand, arguing that rapid job loss could severely harm the broader economy. The report, set in a hypothetical 2028 scenario, highlights rising market volatility and growing differentiation between AI beneficiaries (e.g., semiconductors) and vulnerable industries (e.g., software, payment processing).

marsbit02/24 09:20