TechFlow news — Andrew Kang, co-founder of Mechanism Capital, said that massive unemployment caused by AI could become the biggest economic risk next year.
Kang pointed out that AI technology is advancing at an exponential pace and has already profoundly impacted multiple industries. With reasoning-capable large language models on the horizon, most jobs may face the risk of being replaced by AI.
He specifically mentioned efforts by companies like Figure to give AI a physical form, saying this would fundamentally transform labor-intensive fields.
Kang noted that while AI might reduce corporate costs in the short term, in the long run it could trigger widespread job losses and hurt consumer demand. He believes universal basic income (UBI) might be a solution, but implementation faces political challenges. Kang emphasized that although he hopes AI will benefit humanity, the problems arising from its rapid development urgently need to be addressed.
