May 31, 2026
RawStory recently published an article featuring research conducted by Gerry Tsoukalas, Professor in Information Systems, warning that widespread adoption of artificial intelligence could create an “automation arms race” that harms both workers and businesses.
The research argues that as companies increasingly replace employees with AI to remain competitive, the resulting loss of jobs and wages could ultimately reduce consumer spending and weaken overall economic demand.
The study concludes that market forces alone may be unable to correct this dynamic, even as AI capabilities improve. According to the authors, greater competition and more powerful AI could accelerate automation beyond what is economically optimal, creating long-term risks for both labor markets and business growth.
The study contributes to growing policy discussions around AI governance, workforce displacement, and the balance between technological innovation and economic sustainability.
