“As an economist, I understand productivity; people lose jobs when technology changes. But the valuations of these AI companies are literally based on the assumption that hundreds of millions of people will lose their jobs and employers will buy AI services instead of labour services.”
Dr Denniss said that while much of the attention was focused on the technology itself, he was more concerned about the broader economic consequences.
“What is the ATO’s plan? What are the state government plans?” he asked the committee.
“Again, all that money that Anthropic is betting on is coming from somewhere, and that’s going to have very real consequences for individuals, for communities, for the economy, for the way Commonwealth budgets are drawn up.”
Dr Denniss also challenged the argument that Australia risked being left behind unless it rapidly embraced AI, warning that national security concerns should not be used to justify an unrestricted rollout.
EDIT: https://thepoint.com.au/new/261022-not-an-unintended-consequence-mass-unemployment-is-the-ai-business-model