Latest news with #economicdisruption
Yahoo
05-08-2025
- Business
- Yahoo
Ex-Google exec's shocking warning: AI will create 15 years of ‘hell' — starting sooner than we think
A former Google executive warned that artificial intelligence will plunge society into more than a decade of severe disruption and hardship as it eliminates many white-collar jobs — and the 'hell' will begin as early as 2027. Mo Gawdat, who left Google X as its chief business officer in 2018 and has become a popular author and public speaker, painted a grim picture of widespread job losses, economic inequality and social chaos from the AI revolution. 'The next 15 years will be hell before we get to heaven,' Gawdat told British entrepreneur Steven Bartlett on his 'Diary of a CEO' podcast on Monday. Gawdat, 58, pointed to his own startup, which builds emotional and relationship-focused artificial intelligence. It is run by three people. 'That startup would have been 350 developers in the past,' he told Bartlett in the interview, first reported by Business Insider. 'As a matter of fact, podcaster is going to be replaced.' Gawdat specifically warned that 'the end of white-collar work' will begin by the late 2020s, representing a fundamental shift in how society operates. Unlike previous technological revolutions that primarily affected manual labor, he argues this wave of automation will target educated professionals and middle-class workers who form the backbone of modern economies. The Egyptian-born tech whiz, who was a millionaire by age 29, believes this massive displacement will create dangerous levels of economic inequality. Without proper government oversight, AI technology will channel unprecedented wealth and influence to those who own or control these systems, while leaving millions of workers struggling to find their place in the new economy, according to Gawdat. Beyond economic concerns, Gawdat anticipates serious social consequences from this rapid transformation. Gawdat said AI will trigger significant 'social unrest' as people grapple with losing their livelihoods and sense of purpose — resulting in rising rates of mental health problems, increased loneliness and deepening social divisions. 'Unless you're in the top 0.1%, you're a peasant,' Gawdat said. 'There is no middle class.' Despite his gloomy predictions, Gawdat said that the period of 'hell' will be followed by a 'utopian' era that would begin after 2040, when workers will be free from doing repetitive and mundane tasks. Instead of being 'focused on consumerism and greed,' humanity could instead be guided by 'love, community, and spiritual development,' according to Gawdat. Gawdat said that it is incumbent on governments, individuals and businesses to take proactive measures such as the adoption of universal basic income to help people navigate the transition. 'We are headed into a short-term dystopia, but we can still decide what comes after that,' Gawdat told the podcast, emphasizing that the future remains malleable based on choices society makes today. He argued that outcomes will depend heavily on decisions regarding regulation, equitable access to technology, and what he calls the 'moral programming' of AI algorithms. 'Our last hurrah as a species could be how we adapt, re-imagine, and humanize this new world,' Gawdat said. Gawdat's predictions about mass AI-driven disruption are increasingly backed by mainstream economic data and analysis. Anthropic CEO Dario Amodei has warned of a 'white-collar bloodbath,' predicting that up to half of all entry-level office jobs could vanish within five years. The World Economic Forum says 40% of global employers expect to reduce staff due to AI, and Harvard researchers estimate that 35% of white-collar tasks are now automatable. Meanwhile, Challenger, Gray & Christmas reports that over 27,000 job cuts since 2023 have been directly attributed to AI, with tens of thousands more expected. Goldman Sachs and McKinsey project a multi-trillion-dollar boost to global GDP from AI, but the IMF cautions that these gains may worsen inequality without targeted policy responses. Analysts from MIT and PwC echo Gawdat's fears of wage collapse, wealth concentration, and social unrest — unless governments act swiftly to manage the transition. Solve the daily Crossword
Yahoo
24-06-2025
- Business
- Yahoo
Barack Obama Warns AI Revolution Is 'Not Hype,' Says 'You're Going To Start Seeing Shifts...'
Former President Barack Obama warned that artificial intelligence is "coming to your neighborhood faster than you think," saying the technology is already reshaping white-collar work and could accelerate economic disruption. What Happened: Speaking with historian Heather Cox Richardson at The Connecticut Forum, Obama said the AI boom "is not made up. It's not over-hyped. You are already there, probably." after meeting backstage with Hartford business owners. 'I guarantee you you're going to start seeing shifts in white-collar work as a consequence of what these new AI models can do,' he added, predicting the trend will 'speed up.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — His comments came as venture and corporate leaders debate forecasts that AI could wipe out up to half of entry-level office jobs within five years. Obama has shared a similar warning on social media, urging public discussions on the technology for its "accelerating impact' on jobs. Obama pushed back on skepticism that AI mirrors past tech cycles. "Most of the problems we face are not simply technical," he said, but the pace of change means policies must anticipate displacement earlier than in previous industrial It Matters: The former President's comment arrived weeks after Anthropic CEO Dario Amodei's warning that people should be "worried" about the AI age. In contrast, that take has since seen some pushback from the likes of Nvidia (NASDAQ:NVDA) CEO Jensen Huang and billionaire Mark Cuban, who's certain that AI will create more jobs. Demis Hassabis, CEO of Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) subsidiary Google's DeepMind, is also of the opinion that while AI is displacing certain jobs, it will also create new ones. Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg envisions AI evolving into a "midlevel engineer" capable of writing code, enabling small, talent-dense teams to develop high-quality products. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo courtesy: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Barack Obama Warns AI Revolution Is 'Not Hype,' Says 'You're Going To Start Seeing Shifts...' originally appeared on
Khaleej Times
22-06-2025
- Business
- Khaleej Times
Oil nears $100 as US-Iran escalation fuels market jitters, inflation fears
The US military strike on Iranian nuclear facilities and the widening war in the Middle East have sent fresh shockwaves through global markets, heightening fears of spiralling oil prices, inflationary pressure, and economic disruption. As tensions escalate following Iran's intensified missile attacks on Israel and the sudden US involvement, analysts warn that a full-blown regional conflict could push Brent crude toward the $100 mark, ignite market volatility, and derail the fragile global recovery. India-based maritime analyst and WMC Blue Economy Forum Chairman Nanoo Viswanadhan said the most immediate impact is being felt in the shipping sector. Insurance premiums for ships passing through the Strait of Hormuz — a critical maritime chokepoint between Iran and Oman that sees over 20 per cent of global crude oil flow — have jumped more than 60 per cent since the Iran-Israel conflict erupted. 'The cost of hull and machinery insurance has surged from 0.125 per cent to 0.2 per cent of a vessel's value within days, reflecting heightened risk perceptions,' he said. Market watchers said with oil poised to breach new thresholds and inflation risks resurging, the global economy is entering a new phase of uncertainty. 'Whether this crisis triggers another global economic downturn or a geopolitical reset will depend largely on the next steps taken by Iran, Israel, and the US.' Oil prices have already surged by over 18 per cent since June 10, with Brent touching $79.04 per barrel on Thursday — its highest in nearly five months — before dropping to $75.48 at close on Friday. Energy analysts say a sustained rally past $100 could materialise if Iran retaliates by targeting American interests or Gulf oil infrastructure, or disrupts shipping through the Strait of Hormuz. 'Much depends on Iran's next move, but we are now firmly on the edge of a major oil supply shock,' said Saul Kavonic, senior energy analyst at MST Marquee. 'A targeted disruption in Hormuz could set oil soaring past $100.' The International Monetary Fund, World Bank, and OECD have all lowered their global growth forecasts in recent months, citing inflationary risks and geopolitical tensions. Any significant hike in oil and gas prices, they warn, would exacerbate inflation and force central banks to delay or reverse anticipated interest rate cuts. Bloomberg Economics echoed the concern, stating that the Middle East conflict adds an upward impulse to global inflation, just as supply chains and financial markets are starting to stabilise. Financial markets remain on edge, with investors turning to traditional safe havens such as gold and the US dollar. The S&P 500, after a modest drop in the days following Israel's initial strikes on June 13, has remained flat, while cryptocurrency markets have shown sharper reactions. Ether, seen as a proxy for retail investor sentiment, fell 5 per cent on Sunday, bringing its total losses since June 13 to 13 per cent. Investor sentiment is clouded by uncertainty, with many bracing for volatility. 'Markets will be alarmed in the short term. Oil will open higher, and there will be a knee-jerk flight to safety,' said Mark Spindel, CIO of Potomac River Capital. 'We don't yet know the full extent of the damage or Iran's next move. The risk premium is back in global markets.' Steve Sosnick, chief market strategist at IBKR, said the dollar could gain strength amid global anxiety. 'If markets flee to safety, we will see bond yields dip and the dollar strengthen. But equities could react sharply depending on how much further Iran is willing to escalate.' Jamie Cox of Harris Financial Group struck a cautious note of optimism, suggesting that the display of US military might may lead Iran to seek a diplomatic off-ramp. 'With its nuclear capability neutralised, Iran has lost leverage. There's a possibility that they now opt for a face-saving peace deal,' he said. Historically, Middle East crises have prompted temporary market corrections, followed by rebounds. During the 2003 Iraq invasion and 2019 Saudi oil facility attacks, the S&P 500 initially dipped but recovered within months. According to Wedbush Securities and CapIQ Pro, the index was on average 2.3 per cent higher two months after major conflicts began.
South China Morning Post
21-06-2025
- Business
- South China Morning Post
A truly Asian economic bloc – can Asia succeed where it failed?
'It's an ill wind that blows nobody any good,' to quote a centuries-old proverb. It is one that could be applied now with justification to the ill winds sweeping across the Pacific from US President Donald Trump's America to Asia. These disruptive currents are creating geopolitical turbulence, economic disruption and financial instability. However, the opportunity they present for Asia to challenge the post-war economic order and reshape its own destiny has received less attention. Among the more glaring examples of the United States leaning heavily on Asian leaders to abandon domestic initiatives was its strong opposition to the East Asia Economic Caucus , which was proposed as early as 1990 by then Malaysian Prime Minister Mahathir Mohamad. In 1991, former South Korean prime minister Nam Duck-woo proposed the establishment of a Northeast Asia Development Bank during a lecture in Tianjin. Like Sakakibara's proposed Asian monetary fund, such a development bank would have given East Asia considerably greater control over its own economic development and destiny than the region enjoyed at the time, but it was not in line with the US vision for the Asia-Pacific.
Yahoo
01-06-2025
- Business
- Yahoo
Guard Your Card Illinois: Illinois General Assembly Delays Implementation of Flawed Interchange Fee Prohibition Act
Small Businesses, Local Financial Institutions and Consumers Temporarily Spared From Chaos While Federal Court Challenge Continues to Dismantle This Misguided Policy SPRINGFIELD, Ill., June 1, 2025 /PRNewswire/ -- The Illinois General Assembly has delayed the implementation of the flawed Interchange Fee Prohibition Act to July 1, 2026, according to Guard Your Card Illinois. This law is currently being challenged in federal court, with a partial preliminary injunction giving protections to federally chartered and national institutions while leaving Illinois banks, credit unions, small business owners and consumers in the path of chaos. "We thank the Illinois General Assembly, House Speaker Chris Welch and Senate President Don Harmon for extending the effective date of the Interchange Fee Prohibition Act to July 1, 2026," said Ben Jackson, Executive Vice President of the Illinois Bankers Association. "This law will cause widespread economic disruption, and mounting evidence shows that the measure overwhelmingly benefits corporate megastores while placing an undue financial burden on small businesses and smaller financial institutions that form the backbone of our local economies. In the coming months, we will urge the Illinois General Assembly to act in the best interest of their constituents by fully repealing this law." Last May, an undebated, last-minute provision was included in Illinois' budget package that will establish Illinois as a radical outlier in the global payments system and will upend the way credit and debit cards work across the state. With no workable technology and no system in place as it has never been implemented anywhere in the world, it is unknown how Illinois financial institutions, business owners and consumers will be able to comply with the law. Illinois consumers could be forced to pay tax or gratuity in cash or by check, and purchases might require two transactions. "Credit unions across Illinois appreciate the General Assembly's recognition of the urgent need for relief from the Interchange Fee Prohibition Act," said Ashley Sharp, Senior Vice President of State Advocacy and Legislative Counsel for the Illinois Credit Union League. "This misguided policy will negatively impact the consumers we serve, and we will continue our efforts to have this law fully repealed." The Illinois Bankers Association and the Illinois Credit Union League were among a group of plaintiffs who filed litigation to challenge the law last August. A partial preliminary injunction was granted in December, ruling that national banks, federal savings banks and out of state banks would be exempt from complying from the law. However, Illinois' own state-chartered banks, as well as state and federal credit unions, will still have to comply with this law. "The Community Bankers Association of Illinois appreciates the General Assembly taking the prudent approach of delaying the implementation of the IFPA," said Jerry Peck, Senior Vice President of government relations at the Community Bankers Association of Illinois. "We look forward to continued conversations with lawmakers about the unintended negative consequences this deeply flawed law will have for consumers and small business." Last October, the Office of the Comptroller of the Currency, which charters and examines national banks, filed an amicus brief stating that the IFPA "is an ill-conceived, highly unusual and largely unworkable state law," and "it is likely that fraud risk would increase significantly, consumer services would be constrained, and public trust would decline." Small businesses will be left with headaches from this law while corporate megastores will be the beneficiaries. A new study analyzing the cost implications of an Illinois credit card law shows 40 of the largest retailers will soak up nearly 40 percent of the estimated $118 million reduction in interchange. This is why corporate megastores have publicly supported similar legislation in other states. "The Illinois General Assembly took a step in the right direction by delaying the implementation of the Interchange Fee Prohibition Act, a law that will disrupt a system that has worked efficiently for decades and threaten the economic vitality of small businesses across our state," said Lou Sandoval, President and CEO of the Illinois Chamber of Commerce. "The Illinois Chamber of Commerce urges lawmakers to repeal this law and focus on policies that support small businesses across Illinois." The Illinois State Black Chamber of Commerce and the Illinois Hispanic Chamber of Commerce have advocated for a repeal of this law due to the harmful impact it will have on small businesses across the state. "Delaying the implementation of this misguided policy gives small business owners the protections they deserve while the law continues to be challenged in federal court," said Larry Ivory, President and CEO of the Illinois State Black Chamber of Commerce. "We urge Illinois legislators to repeal this law before it harms over one million small businesses across the state." "We welcome the decision to delay the implementation of IFPA, but it's clear that this law will have serious unintended consequences on small businesses who are the backbone of Illinois' economy," said Jaime di Paulo, President and CEO of the Illinois Hispanic Chamber of Commerce. "If enacted, this law will limit payment options for small retailers, disrupt existing financial systems, and ultimately increase costs for consumers. For Latino-owned businesses, many of which operate with thin margins and limited access to capital, this kind of disruption could be devastating. While the extension is a good start, we still urge the Illinois legislature to repeal this misguided law and prioritize the needs of our local entrepreneurs and communities." To learn more, visit View original content to download multimedia: SOURCE Guard Your Card Illinois Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
