According to Odaily, Andrew Kang, co-founder of Mechanism Capital, has highlighted the potential economic risks posed by large-scale unemployment due to the rapid advancement of artificial intelligence (AI). Kang noted that AI technology is developing at an exponential rate and is already significantly impacting various industries. With the advent of large language models capable of reasoning, many jobs are at risk of being replaced by AI. He specifically mentioned efforts by companies like Figure to give AI a physical form, which he believes will revolutionize labor-intensive sectors.
Kang pointed out that while AI might reduce business costs in the short term, it could lead to a wave of unemployment and a subsequent decline in consumer spending in the long run. He suggested that universal basic income (UBI) could be a potential solution to mitigate these effects, although its implementation faces political challenges. Kang emphasized the need to address the issues arising from AI's rapid development, despite the hope that AI will ultimately benefit humanity.
