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

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

Unicorn Pennylane secures €175 million to expand its AI financing operating system for European small and medium-sized enterprises.

January 21, 2026

Data Indicates Vanishing AI Insights on Specific Financial Queries

January 21, 2026

Workplace Stream secures €76 million in Series D funding, led by Sofina.

January 21, 2026

Key Stablecoin Trends to Monitor in 2026 – Fintech Schweiz Digital Finance News

January 21, 2026
Facebook X (Twitter) Instagram
Trending
  • Unicorn Pennylane secures €175 million to expand its AI financing operating system for European small and medium-sized enterprises.
  • Data Indicates Vanishing AI Insights on Specific Financial Queries
  • Workplace Stream secures €76 million in Series D funding, led by Sofina.
  • Key Stablecoin Trends to Monitor in 2026 – Fintech Schweiz Digital Finance News
  • Career Opportunities in Blockchain and FinTech by 2026
  • UK Parliamentary Panel Indicates Fears that Insufficient AI Oversight May Threaten Financial Stability
  • UK financial regulators warn that the public may face significant risks from AI practices.
  • Revamping the Customer Challenge Title
Facebook X (Twitter) Instagram Pinterest Vimeo
fintechbits
  • News

    Headlines from KUTV covering news, weather, sports, and breaking updates in Salt Lake City

    January 19, 2026

    Kuda Reduces Losses to $5.8 Million as Fintech Concentrates on Achieving Profitability

    January 14, 2026

    Fintech Titan or Overhyped Relic?

    January 7, 2026

    PayPal joins other fintech companies benefiting from Trump-era deregulation.

    December 16, 2025

    Zilch, the fintech unicorn, secures payment license from city regulator.

    December 10, 2025
  • AI

    Unicorn Pennylane secures €175 million to expand its AI financing operating system for European small and medium-sized enterprises.

    January 21, 2026

    Data Indicates Vanishing AI Insights on Specific Financial Queries

    January 21, 2026

    UK Parliamentary Panel Indicates Fears that Insufficient AI Oversight May Threaten Financial Stability

    January 21, 2026

    UK financial regulators warn that the public may face significant risks from AI practices.

    January 21, 2026

    Revamping the Customer Challenge Title

    January 20, 2026
  • Acquisitions

    Fintech Partnership Enhances UST’s Digital Banking Goals

    January 20, 2026

    CoinGecko is reportedly exploring a sale valued at $500 million.

    January 16, 2026

    Flutterwave acquires Nigerian Mono in a unique exit for African fintech.

    January 6, 2026

    MergersandAcquisitions.net publishes a comprehensive report on trends and analyses in financial services and fintech mergers and acquisitions.

    December 23, 2025

    Teybridge Capital Europe finalizes strategic purchase of London-based fintech company Atom CTO

    November 18, 2025
  • Trends

    Key Stablecoin Trends to Monitor in 2026 – Fintech Schweiz Digital Finance News

    January 21, 2026

    Trends in Emerging Fintech Technologies Emphasize Wealth Management

    January 8, 2026

    GCC Fintech Landscape: Embracing Open Banking, Nurturing Startups, and Investment Patterns

    January 7, 2026

    eLEND Solutions Introduces Fintech Platform to Simplify Financing and Credit for Dealerships – Pete MacInnis

    January 6, 2026

    Saudi Arabian fintech sector projected to grow to $4.8 billion by 2034

    December 22, 2025
  • Insights

    Insights on the Fintech.TV Collaboration with Datavault AI Inc. Stock (DVLT)

    January 17, 2026

    Wealthfront aims for a valuation of as much as $2.05 billion in its U.S. IPO, according to CTV News.

    January 7, 2026

    New UNF collaboration seeks to promote fintech innovation – Action News Jax

    December 27, 2025

    Recent fintech software failures spark industry-wide discussion on system resilience.

    December 22, 2025

    MobileMoney Ltd recognizes leading FinTech partners and industry figures at the 2025 FinTech Stakeholder Dinner and Awards.

    December 11, 2025
  • Rumors

    Is Coinbase exploring the acquisition of BVNK to enhance its Stablecoin growth?

    January 20, 2026

    JD-SW refutes speculation about issuing RMB10 billion in Dim Sum bonds, according to Financial News.

    January 15, 2026

    JD-SW refutes speculation about issuing RMB10 billion in Dim Sum bonds

    January 14, 2026

    JD-SW refutes claims about issuing RMB10 billion in Dim Sum bonds

    January 13, 2026

    C3 AI Explores Sale Following CEO Exits and Other Speculations

    January 12, 2026
  • Startups

    Workplace Stream secures €76 million in Series D funding, led by Sofina.

    January 21, 2026

    Fintech investment surged by 27% in 2025 despite a decline in the number of deals, with larger funding amounts.

    January 16, 2026

    Leading FinTech Startups in the U.S.

    January 15, 2026

    Alpaca, a fintech startup, achieves the status of the first unicorn founded by Japanese entrepreneurs in the United States.

    January 15, 2026

    Fintech lender Kissht receives SEBI approval for over Rs 1,000 crore IPO; Vertex Ventures and others divest shares.

    January 12, 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

Unicorn Pennylane secures €175 million to expand its AI financing operating system for European small and medium-sized enterprises.

January 21, 2026

Data Indicates Vanishing AI Insights on Specific Financial Queries

January 21, 2026

UK Parliamentary Panel Indicates Fears that Insufficient AI Oversight May Threaten Financial Stability

January 21, 2026
Leave A Reply Cancel Reply

Latest news

Unicorn Pennylane secures €175 million to expand its AI financing operating system for European small and medium-sized enterprises.

January 21, 2026

Data Indicates Vanishing AI Insights on Specific Financial Queries

January 21, 2026

Workplace Stream secures €76 million in Series D funding, led by Sofina.

January 21, 2026
News
  • AI in Finance (2,014)
  • Breaking News (187)
  • Corporate Acquisitions (78)
  • Industry Trends (230)
  • Jobs Market News (331)
  • Market Insights (229)
  • Market Rumors (299)
  • Regulatory Updates (193)
  • Startup News (1,281)
  • Technology Innovations (201)
  • 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 (2,014)
  • Breaking News (187)
  • Corporate Acquisitions (78)
  • Industry Trends (230)
  • Jobs Market News (331)
  • Market Insights (229)
  • Market Rumors (299)
  • Regulatory Updates (193)
  • Startup News (1,281)
  • Technology Innovations (201)
  • 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.