Nobel economist warns AI doomsday job fears could become self-fulfilling prophecy

Nobel Prize-winning economist Robert Shiller warned that persistent predictions about artificial intelligence destroying jobs could become a self-fulfilling prophecy. Shiller, known for his work on irrational exuberance and market sentiment, wrote about the potential for doomsday narratives to cause actual economic harm. He noted that while the job market has slowed for multiple reasons, there are reports that fear of an AI apocalypse is worsening the freeze.

Shiller did not dismiss the possibility that AI could displace some workers, but he emphasized that the public discourse itself can shape economic outcomes.

The comments come amid an ongoing debate about AI's impact on employment. Some studies forecast significant job displacement in sectors like customer service, legal work, and content creation, while others point to historical patterns where technology ultimately creates new roles. Shiller's warning adds a behavioral economics perspective, suggesting that anxiety about AI might be as potent a force as the technology itself in reshaping the labor market.