Nearly 200 economists and AI leaders sign 'We Must Act Now' statement on AI's economic risks

A group of economists and researchers warns that artificial intelligence could transform the global economy faster than any previous technological breakthrough, arguing that policymakers must move quickly to understand and respond to its potential impact.

According to a report by The New York Times, a statement titled "We Must Act Now" has been signed by nearly 200 economists and researchers, including 15 Nobel laureates and the chief economists of two of the world's leading AI companies, OpenAI and Anthropic, to raise awareness regarding the disruptive nature of AI. Former Google CEO Eric Schmidt and venture capitalist Vinod Khosla have also endorsed the statement.

Industry leaders have repeatedly warned that as AI becomes more capable, it could automate a significant share of human work, leading to widespread job losses. Those predictions, however, have been met with skepticism, with critics arguing that technological change typically unfolds more gradually than many industry executives suggest.

AI's impact could surpass the Industrial Revolution

The statement, released on Monday, highlights growing concerns over AI's potential to replace human workers. It warns that the effects of AI could be "larger than the Industrial Revolution, but unfold over a vastly shorter time frame."

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Among the signatories are economists who have previously expressed caution about AI, including Daron Acemoglu and Simon Johnson, professors at the Massachusetts Institute of Technology (MIT).

At the same time, other economists, including Erik Brynjolfsson, believe AI will ultimately prove beneficial by making workers more productive and improving living standards. They point to historical technologies such as steam power and personal computers, which eliminated entire categories of jobs but also created new industries and employment opportunities.

The economists argue that AI could follow a similar long-term trajectory. However, they acknowledge that its short-term disruption is already becoming evident, particularly as generative AI reshapes white-collar work. Some economists have also warned that unemployment insurance systems and other social safety nets may not be equipped to handle large-scale labour market disruptions if AI adoption accelerates.

According to The New York Times, the statement urges economists, policymakers and industry leaders to "act now to understand the economics of transformative A.I." and implement policies that will "steer A.I. in a direction that complements humans and benefits society." However, it stops short of outlining any specific policy recommendations.

Brynjolfsson said one of the most urgent priorities for economists is developing better ways to measure AI adoption and its economic impact. He added that the lack of reliable data has remained one of the biggest obstacles for researchers studying AI in recent years.