According to TechFlow, Andrew Kang, co-founder of Mechanism Capital, said that large-scale unemployment caused by AI may become the biggest economic risk next year.

Kang pointed out that AI technology is developing at an exponential rate and has profoundly affected many industries. With the advent of large language models with reasoning capabilities, most jobs may be at risk of being replaced by AI.

He specifically mentioned the efforts of companies such as Figure to give AI a physical form, believing that this will revolutionize fields that rely on human labor.

Kang said that while AI may reduce corporate costs in the short term, it may cause unemployment and hit consumption in the long run. He believes that universal basic income (UBI) may be a solution, but implementation faces political challenges. Kang stressed that although he hopes AI will benefit mankind, the problems brought about by its rapid development need to be solved urgently.