AI could trigger a layoff trap that even smart CEOs can’t escape

“”The main question we wanted to understand is who’s going to be left to buy products if everyone gets automated and replaced by a robot?” Tsoukalas, a senior fellow at Wharton, told journalist Katty Kay on the New Normal podcast that was posted on Monday.

The paper describes a classic economic dilemma: A single company may recognize that laying off too many workers reduces demand for its products, but in a competitive market, every company has an incentive to automate, because failing to do so risks losing to rivals.”

https://finance.yahoo.com/economy/policy/articles/ai-could-trigger-layoff-trap-081101725.html

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