More than 200 economists and AI leaders warn of rapid AI-driven job displacement risks

A public statement signed by more than 200 economists, AI researchers, and Nobel laureates warns that transformative artificial intelligence could drive an unprecedented transformation of the economy over the next decade, with risks including large-scale job displacement. The statement, titled “We Must Act Now,” argues that the potential changes could be larger than the Industrial Revolution but unfold over a much shorter time frame. It calls on economists, policymakers, and technology leaders to act now to understand the economics of transformative AI and to build incentives, guardrails, and institutions to steer AI toward complementing humans and benefiting society.

Among the signatories are prominent economists previously skeptical of AI’s disruptive potential, including MIT professors and 2024 Nobel laureates Daron Acemoglu and Simon Johnson. Stanford economist Erik Brynjolfsson, who helped organize the statement, told the *New York Times* that the goal was to elevate the urgency of AI’s disruptive potential among economists and policymakers. “I’m kind of worried that we’re not going to be ready for the tsunami that’s coming,” Brynjolfsson said. The statement follows a Wall Street Journal survey of 16 leading economists in which half said AI would lead to no net change in jobs, five said it would lead to net losses, and three said it would lead to net growth.

The warning comes as early data suggests AI is beginning to affect certain segments of the labor market. According to the Stanford Canaries Dashboard, which uses ADP payroll data, jobs most exposed to AI shrank by 0.5% while the least exposed grew by 0.2%. Entry-level jobs declined by 2.7% this year, while jobs for mid-career workers (ages 35–40) grew by 1.6%. While these are small effect sizes, the directionality is described as notable. The data also aligns with reports that US software development job postings are up 15% since the launch of Claude Code in February 2025, with 71% of the increase in senior-level roles, suggesting employers may be using AI to offload entry-level tasks.

Economists caution that current data on AI’s labor market impact remains limited and sometimes contradictory. The statement highlights the lack of reliable data as a major obstacle to understanding and addressing AI-driven disruption. Brynjolfsson emphasized the need for better data collection to guide policy responses. The US government has begun exploring solutions, including bipartisan support for a sovereign wealth fund financed by AI companies, though such proposals remain under discussion.

Policy experts have proposed a range of measures in response to potential AI-driven labor disruption. Labor economist Kathryn Anne Edwards has called for overhauling unemployment insurance, while Brookings Institution’s Molly Kinder has suggested wage insurance and government incentives for employers to hire younger workers. The statement does not specify particular policy asks but frames the need for urgent action to develop guardrails and institutions capable of steering AI’s societal impact.