What is the financial incentive for AI to replace jobs?

 

Profits.

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Trillion-dollar companies want to earn trillions more—and they’re investing billions to train AI systems capable of replacing millions of workers. In 2024, the world’s GDP was about $112 trillion, and roughly half of that came from labor. If AI can replace even a small share of that labor, corporate profits could rise by trillions. Those profits would come directly from what are now people’s paychecks. This is the business model driving today’s AI boom and the reason AI developers are valued so highly on Wall Street.

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Investors believe these companies will succeed in selling AI tools that replace workers and sharply increase productivity—and profits. For example, Nvidia, which designs the chips that power AI systems, has seen its stock value surge to around $5 trillion, making it the most valuable company in history. When AI can perform a job at a fraction of the cost, companies have a clear financial incentive to automate—highlighting why we must ensure that efficiency doesn’t come at the expense of human livelihoods.

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The real question isn’t whether AI will make some people richer—it’s whether we’ll allow that wealth to come from replacing human workers instead of empowering them.