this post was submitted on 05 Nov 2025
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Fuck AI

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AI, in this case, refers to LLMs, GPT technology, and anything listed as "AI" meant to increase market valuations.

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When the bubble pops - How AI will destroy the economy

How exactly will AI steal your job? And what will it look like when unemployment skyrockets?

AI is hyped. It is hyped to be able to do all of our tasks much more efficiently than most humans could, very rapidly erasing the need for human labor. The collateral damage? The entirety of the working class. The mass layoffs across the tech sector serve to prove this point. The labor cuts are no longer counted in numbers, but in percentages.

If this is truly a systemic trend, then the mass increase in unemployment is irreversible. AI will wipe out the working class as a whole. If that happens, tens of millions of people will be left without income. Income they’d need to buy goods, services and assets. The prices of assets will fall because the retail won’t have the money to spend on them. Profits will fall, leading to the stock market crash, pulverizing incomes and net worth of millions. The economy as we’ve known it for decades will be destroyed.

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[–] RedstoneValley@sh.itjust.works 18 points 1 month ago

The reason the AI Bubble will pop is not mass layoffs and the economic consequences thereof. Those glorified text predictors aka LLMs simply can't meaningfully replace workers on a larger scale. The AI Bubble will pop because the technology is a hype, an unsustainable fantasy and the enormous amount of money speculatively pumped into the companies involved will vanish and drag the economy down with it.

AI Boosters and AI Doomers are two sides of the same coin: Both assume that AI technology is about to become insanely powerful. That's why Altman and his billionaire friends have no problem speculating about mass job loss or the impending end of humanity through AGI. Both sides serve to fuel the hype and this obscures a third possibility: That LLMs are limited in what can be done with them and relying on them to fulfill a promise to actually replace humans might very likely be a dead end. A collective realisation that those lofty promises are just the equivalent of pulling a rabbit out of a hat is what will burst that bubble.

[–] cronenthal@discuss.tchncs.de 11 points 1 month ago

I have to be careful not to hurt myself from too much eye-rolling. These LLMs won't replace anyone, the whole premise is complete nonsense. Study after study, real-life experiment after real-life experiment it's becoming abundantly clear how incredibly limited the whole approach is.

[–] BigTechMustBurn@lemmy.ml 2 points 3 weeks ago

Please, God, just let the AI bubble pop already.

So that NVIDIA can get their heads out of their asses and sell their graphics cards for something affordable this side of the galaxy and actually innovate and improve their performance again – instead of relying on fake pixels for “performance.”

[–] Valmond@lemmy.world -1 points 1 month ago* (last edited 1 month ago) (3 children)

Well, if there is an automaton growing cheap food, working for free, it's a new type of society. It won't be an easy change but I think the outcome might be good actually?

Like we'll always need humans, just less in this automated society, and isn't that great?

I'm not saying all AI crap today is good but I do see a possible good future.

Edit: what a toxic community.

[–] TheBat@lemmy.world 8 points 1 month ago

This bubble is not about that kind of AI. It is majorly driven by GPU guzzling LLM.

[–] HetareKing@piefed.social 6 points 1 month ago

We're not currently on a trajectory toward automata like that, at least not with the kind of AI that's currently heavily being invested in, but even if we were, it would not lead to a positive outcome with the way society is set up right now. The problem is that someone would own the automata and therefore be in complete control over in whose benefit the automata would work. Unless the automata are easy to make (and the patents easily bypassed), making it difficult for someone to monopolise them, it would take a fundamental change to the way the economy works for this to benefit everyone, and that's not an inevitability.

But this video isn't really about that, it's about the much more likely scenario that AI does not end up living up to its promises and the money eventually running out, and what the economic fallout of that will be.