Close Menu
Fintechbits
  • News
  • AI
  • Acquisitions
  • Trends
  • Insights
  • Rumors
  • Startups
  • finjobsly

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

FinTech Acquisition Activity Declines More Than Other Sectors in the First Half of 2023

March 24, 2026

Former Apple Designer Develops Innovative AI Interface at Hark

March 24, 2026

Theta Lake Expands Internationally Following Exceptional Customer Growth

March 24, 2026

Seasonal Income Smoothing Is the Product Nobody Has Built for Creative Freelancers

March 24, 2026
Facebook X (Twitter) Instagram
Trending
  • FinTech Acquisition Activity Declines More Than Other Sectors in the First Half of 2023
  • Former Apple Designer Develops Innovative AI Interface at Hark
  • Theta Lake Expands Internationally Following Exceptional Customer Growth
  • Seasonal Income Smoothing Is the Product Nobody Has Built for Creative Freelancers
  • Cauldron Ferm Transforms Microbial Processes into Continuous Production Systems
  • AI Agents Reduce False Positives in AML Monitoring
  • Central African Republic’s Fintech Developments and Broader Digital Initiatives in 2026
  • Ultrahuman Intensifies U.S. Expansion with Ring Pro as Oura Strengthens Market Position
Facebook X (Twitter) Instagram Pinterest Vimeo
Fintechbits
  • News

    Theta Lake Expands Internationally Following Exceptional Customer Growth

    March 24, 2026

    AI Agents Reduce False Positives in AML Monitoring

    March 24, 2026

    AI Risk Management Toolkit: 4 Essential Pillars MAS Built With 24 Financial Partners

    March 24, 2026

    Armenia’s Fintech and Digital Ecosystem in the Caucasus: A 2026 Perspective

    March 24, 2026

    Moniepoint Acquires Restaurant Platform Orda Africa

    March 24, 2026
  • AI

    Central African Republic’s Fintech Developments and Broader Digital Initiatives in 2026

    March 24, 2026

    The Fintech Ecosystem of Cabo Verde in 2026: Insights from an African Nation

    March 22, 2026

    Your Next Customer Might Not Be Human. Is Your Business Ready?

    March 3, 2026

    Why AI Quoting Will Split the Trades Industry in Two

    February 26, 2026

    How Fintech Companies Balance AI Automation With Human Expertise in Regulated Finance

    February 25, 2026
  • Acquisitions

    FinTech Acquisition Activity Declines More Than Other Sectors in the First Half of 2023

    March 24, 2026

    LATAM FinTech Investments Decrease 31% Year-over-Year Amid Growing Investor Caution

    March 23, 2026

    UK FinTech Deal Activity Declines by 61% Amid Five-Year Low in Investment

    March 22, 2026

    European FinTech Transactions Exceeding $100 Million Rise by 2.6 Times Quarter-over-Quarter as Funding Rebounds in Q1 2025

    March 22, 2026

    Californian Companies Led US FinTech Transactions in Q2 with a 19% Year-over-Year Increase in Activity

    March 22, 2026
  • Trends

    Brazil Maintains Leadership in LatAm FinTech Market in Q2 Despite 77% Year-over-Year Decline in Deal Activity

    March 22, 2026

    Client Churn Data Is a Better Default Predictor Than a Balance Sheet

    March 20, 2026

    European FinTech 2025 Is Back and Means Business

    March 16, 2026

    Subscription Payment Fatigue Is Coming for Children’s Services

    March 16, 2026

    Green Fintech: 5 Proven Reasons It Goes Beyond a Compliance Checkbox

    March 16, 2026
  • Insights

    Seasonal Income Smoothing Is the Product Nobody Has Built for Creative Freelancers

    March 24, 2026

    7 Practical Use Cases Where Stablecoin B2B Payments Outperform Traditional Rails

    March 23, 2026

    Parent Portal Payments: 5 Powerful Reasons They’re Fintech’s Most Overlooked Goldmine

    March 23, 2026

    US Maintains Its Status as the Leading Global WealthTech Hub Despite 47% Decline in Deal Activity in 2025

    March 23, 2026

    European FinTech Investments Experience 11% Year-Over-Year Decline Amid Market Uncertainties in 2025

    March 23, 2026
  • Rumors

    Gilead Snaps Up Arcellx in $7.8B Most cancers Drug Deal

    March 14, 2026

    Tilly’s Inventory Pops After This autumn Earnings Shock

    March 14, 2026

    Elliott and Jana Take Recent Actions Alongside Other Speculations

    February 22, 2026

    Hank Payments (TSX) Rises to CAD 0.26 on February 18, 2026: Catalyst Analysis

    February 19, 2026

    Abivax CEO refers to Eli Lilly acquisition speculation as a diversion.

    February 8, 2026
  • Startups

    Former Apple Designer Develops Innovative AI Interface at Hark

    March 24, 2026

    Cauldron Ferm Transforms Microbial Processes into Continuous Production Systems

    March 24, 2026

    Ultrahuman Intensifies U.S. Expansion with Ring Pro as Oura Strengthens Market Position

    March 24, 2026

    Delve Suspends Demonstrations, Insight Partners Withdraws Investment Following Allegations of ‘Fake Compliance’

    March 24, 2026

    Bengaluru-Based Food Delivery Startup Swish Secures $38 Million in Third Funding Round Within 18 Months

    March 24, 2026
  • finjobsly
Fintechbits
Home » AI can only do 5% of jobs, says MIT economist who fears crash
AI in Finance

AI can only do 5% of jobs, says MIT economist who fears crash

4 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
466ea8c55a56fd6e637082f2493e6dec.jpeg
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

(Bloomberg) – Daron Acemoglu wants to make it clear from the outset that he has nothing against artificial intelligence. He gets the potential. “I’m not a pessimist when it comes to AI,” he says a few seconds into an interview.

Most read on Bloomberg

What makes Acemoglu, a renowned professor at the Massachusetts Institute of Technology, a prophet of doom for the growing economic and financial perils ahead is the relentless hype around technology and how it is fueling a boom in investments and a furious rally in technology stocks.

As promising as AI may be, it’s unlikely to live up to the hype, says Acemoglu. By his calculations, only a small percentage of all jobs – just 5% – are poised to be taken over, or at least greatly aided, by AI over the next decade. That’s good news for workers, yes, but very bad news for companies that are investing billions in technology hoping it will lead to increased productivity.

“A lot of money is going to be wasted,” says Acemoglu. “You will not get an economic revolution with this 5%. »

Acemoglu has become one of the loudest and most publicized voices warning that the AI ​​frenzy on Wall Street and in senior management across America has gone too far. Institute Professor, the highest title for a faculty at MIT, Acemoglu first made a name for himself beyond academic circles a decade ago when he co-authored Why Nations Fail , a New York Times bestselling book. AI, and more broadly the advent of new technologies, have occupied an important place in its economic work for years.

Bulls argue that AI will allow companies to automate much of work tasks and spark a new era of medical and scientific breakthroughs as technology continues to improve. Jensen Huang, CEO of Nvidia, a company whose very name has become synonymous with the AI ​​boom, predicted that growing demand for technology services from a wider range of businesses and governments would require up to to $1 trillion in spending to upgrade data center equipment. in the years to come.

Skepticism about these types of claims has begun to mount – in part because investments in AI have driven up costs much faster than revenues at companies like Microsoft and Amazon – but most Investors remain willing to pay high premiums for stocks poised to ride the AI ​​wave.

Acemoglu envisions three ways the AI ​​story could unfold in the years to come.

  • The first scenario – and by far the most benign – sees the hype slowly dying down and investments in “modest” uses of the technology taking hold.

  • In the second scenario, the frenzy escalates for about a year, leading to a tech stock market crash that leaves investors, executives and students disillusioned with technology. “AI spring followed by AI winter,” he calls it.

  • The third – and scariest – scenario is that this mania goes unchecked for years, leading companies to cut dozens of jobs and pour hundreds of billions of dollars into AI “without understanding what they are going to do.” make some,” only to find themselves scrambling to try to rehire workers when the technology doesn’t work. “There are now widespread negative consequences for the entire economy. »

Most likely? He thinks it’s a combination of the second and third scenarios. C-suites are simply too afraid of missing out on the AI ​​boom to expect the hype machine to slow down any time soon, he says, and “when the hype intensifies, it’s unlikely that the fall will be gentle.”

The second quarter figures illustrate the scale of the spending spree. Four companies alone – Microsoft, Alphabet, Amazon and Meta Platforms – invested more than $50 billion in capital spending during the quarter, much of which was dedicated to AI.

Today’s large language models, like OpenAI’s ChatGPT, are impressive in many ways, Acemoglu says. So why can’t they replace humans, or at least help them a lot, in many jobs? It points to reliability issues and a lack of human-level wisdom or judgment that will make it unlikely that many white-collar jobs will be outsourced to AI in the near future. AI also won’t be able to automate physical jobs like construction or housekeeping, he says.

“You need very reliable information or the ability of these models to faithfully implement certain steps that workers were doing before,” he said. “They can do it in a few places with some human supervision” – like coding – “but in most places they can’t.”

“It’s a reality check of where we are right now,” he said.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Central African Republic’s Fintech Developments and Broader Digital Initiatives in 2026

March 24, 2026

The Fintech Ecosystem of Cabo Verde in 2026: Insights from an African Nation

March 22, 2026

Your Next Customer Might Not Be Human. Is Your Business Ready?

March 3, 2026
Leave A Reply Cancel Reply

Latest news

FinTech Acquisition Activity Declines More Than Other Sectors in the First Half of 2023

March 24, 2026

Former Apple Designer Develops Innovative AI Interface at Hark

March 24, 2026

Theta Lake Expands Internationally Following Exceptional Customer Growth

March 24, 2026
News
  • AI in Finance (2,159)
  • Breaking News (259)
  • Corporate Acquisitions (88)
  • Industry Trends (54)
  • Jobs Market News (338)
  • Market Insights (318)
  • Market Rumors (308)
  • Regulatory Updates (217)
  • Startup News (1,416)
  • Technology Innovations (223)
  • uncategorized (12)
  • X Feed (1)
About US
About US

FintechBits is a blog delivering the latest news and insights in fintech, finance, and technology. We cover breaking news, market trends, innovations, and expert opinions to keep you informed about the future of finance

Facebook X (Twitter) Instagram Pinterest Reddit TikTok
News
  • AI in Finance (2,159)
  • Breaking News (259)
  • Corporate Acquisitions (88)
  • Industry Trends (54)
  • Jobs Market News (338)
  • Market Insights (318)
  • Market Rumors (308)
  • Regulatory Updates (217)
  • Startup News (1,416)
  • Technology Innovations (223)
  • uncategorized (12)
  • X Feed (1)
Happening Now

November 28, 2024

“ Intentionally collaborative ”: how the Rotman school of U of T leads Innovation Fintech

February 6, 2025

‘1957 Ventures’ to Drive FinTech Innovation in Saudi Arabia

September 10, 2024
  • About FintechBits
  • Advertise With us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Terms and services
  • BUY OUR EBOOK GUIDE
© 2026 Designed by Fintechbits

Type above and press Enter to search. Press Esc to cancel.