Nobel laureate warns AI could trigger job losses
Peter Howitt, who just won the 2025 Nobel Prize in Economics for his work on how new tech replaces old industries, is sounding the alarm on AI.
He warns that while innovation drives progress, it can also mean serious job losses—especially if we don't step in to manage the change.
Howitt's warning comes as California just passed a law
Howitt's warning comes as California just passed a first-of-its-kind law regulating interactions with AI chatbots.
He puts it plainly: "This is a conflict. It's going to have to be regulated," arguing that leaving things up to market forces alone isn't enough when people's livelihoods are at stake.
Howitt compares today's AI boom to past tech revolutions
Howitt compares today's AI boom to past tech revolutions like electricity and steam power—big changes that shook up jobs but eventually led to new opportunities.
Still, he thinks there's real uncertainty about how society will adapt this time around, and stresses the need for policies that help workers land on their feet if their jobs are automated away.