'This is the last opportunity for us to wake up': A leading economist warns we're headed for an AI-driven cataclysm
How Daron Acemoglu, one of the world's most respected experts on the economic effects of technology, learned to start worrying and fear AI.

ISCOURSE ECONOMY
The AI heretic
How a leading economist learned to start worrying and fear artificial intelligence"This is the last opportunity for us to wake up," warns Daron Acemoglu. Simon Simard for Insider
Aki Ito
Sep 18, 2023, 6:00 AM EDT
Sure, there have been a few nutjobs out there who think AI will wipe out the human race. But ever since ChatGPT's explosive emergence last winter, the bigger concern for most of us has been whether these tools will soon write, code, analyze, brainstorm, compose, design, and illustrate us out of our jobs. To that, Silicon Valley and corporate America have been curiously united in their optimism. Yes, a few people might lose out, they say. But there's no need to panic. AI is going to make us more productive, and that will be great for society. Ultimately, technology always is.
As a reporter who's written about technology and the economy for years, I too subscribed to the prevailing optimism. After all, it was backed by a surprising consensus among economists, who normally can't agree on something as fundamental as what money is. For half a century, economists have worshiped technology as an unambiguous force for good. Normally, the "dismal science" argues, giving one person a bigger slice of the economic pie requires giving a smaller slice to the sucker next door. But technology, economists believed, was different. Invent the steam engine or the automobile or TikTok, and poof! Like magic, the pie gets bigger, allowing everyone to enjoy a bigger slice.
"Economists viewed technological change as this amazing thing," says Katya Klinova, the head of AI, labor, and the economy at the nonprofit Partnership on AI. "How much of it do we need? As much as possible. When? Yesterday. Where? Everywhere." To resist technology was to invite stagnation, poverty, darkness. Countless economic models, as well as all of modern history, seemed to prove a simple and irrefutable equation: technology = prosperity for everyone.
There's just one problem with that formulation: It's turning out to be wrong. And the economist who's doing the most to sound the alarm — the heretic who argues that the current trajectory of AI is far more likely to hurt us rather than help us — is perhaps the world's leading expert on technology's effects on the economy.
OX-DRAWN CARTS — Farming became more productive in medieval times, but the gains from new technology rarely benefited peasants. Universal History Archive/Universal Images Group via Getty Images
Daron Acemoglu, an economist at MIT, is so prolific and respected that he's long been viewed as a leading candidate for the Nobel prize in economics. He used to believe in the conventional wisdom, that technology is always a force for economic good. But now, with his longtime collaborator Simon Johnson, Acemoglu has written a 546-page treatise that demolishes the Church of Technology, demonstrating how innovation often winds up being harmful to society. In their book "Power and Progress," Acemoglu and Johnson showcase a series of major inventions over the course of the past 1,000 years that, contrary to what we've been told, did nothing to improve, and sometimes even worsened, the lives of most people. And in the periods when big technological breakthroughs did lead to widespread good — the examples that today's AI optimists cite — it was only because ruling elites were forced to share the gains of innovation widely, rather than keeping the profits and power for themselves. It was the fight over technology, not just technology on its own, that wound up benefiting society.
"The broad-based prosperity of the past was not the result of any automatic, guaranteed gains of technological progress," Acemoglu and Johnson write. "We are beneficiaries of progress, mainly because our predecessors made the progress work for more people."
Today, in this moment of peak AI, which path are we on? The terrific one, where we all benefit from these new tools? Or the terrible one, where most of us lose out? Over the course of three conversations this summer, Acemoglu told me he's worried we're currently hurtling down a road that will end in catastrophe. All around him, he sees a torrent of warning signs — the kind that, in the past, wound up favoring the few over the many. Power concentrated in the hands of a handful of tech behemoths. Technologists, bosses, and researchers focused on replacing human workers instead of empowering them. An obsession with worker surveillance. Record-low unionization. Weakened democracies. What Acemoglu's research shows — what history tells us — is that tech-driven dystopias aren't some sci-fi rarity. They're actually far more common than anyone has realized.
"There's a fair likelihood that if we don't do a course correction, we're going to have a truly two-tier system," Acemoglu told me. "A small number of people are going to be on top — they're going to design and use those technologies — and a very large number of people will only have marginal jobs, or not very meaningful jobs." The result, he fears, is a future of lower wages for most of us.
Acemoglu shares these dire warnings not to urge workers to resist AI altogether, nor to resign us to counting down the years to our economic doom. He sees the possibility of a beneficial outcome for AI — "the technology we have in our hands has all the capabilities to bring lots of good" — but only if workers, policymakers, researchers, and maybe even a few high-minded tech moguls make it so. Given how rapidly ChatGPT has spread throughout the workplace — 81% of large companies in one survey said they're already using AI to replace repetitive work — Acemoglu is urging society to act quickly. And his first task is a steep one: deprogramming all of us from what he calls the "blind techno-optimism" espoused by the "modern oligarchy."
"This," he told me, "is the last opportunity for us to wake up."
THE SPINNING JENNY — New textile machines in the 18th and 19th centuries drove many skilled workers into lower-wage jobs. Hulton Archive/Getty Images/Getty Images
Acemoglu, 56, lives with his wife and two sons in a quiet, affluent suburb of Boston. But he was born 5,000 miles away in Istanbul, to a country mired in chaos. When he was 3, the military seized control of the government and his father, a left-leaning professor who feared the family's home would be raided, burned his books. The economy crumbled under the weight of triple-digit inflation, crushing debt, and high unemployment. When Acemoglu was 13, the military detained and tried hundreds of thousands of people, torturing and executing many. Watching the violence and poverty all around him, Acemoglu started to wonder about the relationship between dictatorships and economic growth — a question he wouldn't be able to study freely if he stayed in Turkey. At 19, he left to attend college in the UK. By the freakishly young age of 25, he completed his doctorate in economics at the London School of Economics.
Moving to Boston to teach at MIT, Acemoglu was quick to make waves in his chosen field. To this day his most cited paper, written with Johnson and another longtime collaborator, James Robinson, tackles the question he pondered as a teenager: Do democratic countries develop better economies than dictatorships? It's a huge question — one that's hard to answer, because it could be that poverty leads to dictatorship, not the other way around. So Acemoglu and his coauthors employed a clever workaround. They looked at European colonies with high mortality rates, where history showed that power remained concentrated in the hands of the few settlers willing to brave death and disease, versus colonies with low mortality rates, where a larger influx of settlers pushed for property rights and political rights that checked the power of the state. The conclusion: Colonies that developed what they came to call "inclusive" institutions — ones that encouraged investment and enforced the rule of law — ended up richer than their authoritarian neighbors. In their ambitious and sprawling book, "Why Nations Fail," Acemoglu and Robinson rejected factors like culture, weather, and geography as things that made some countries rich and others poor. The only factor that really mattered was democracy.
The book was an unexpected bestseller, and economists hailed it as paradigm-shifting. But Acemoglu was also pursuing a different line of research that had long fascinated him: technological progress. Like almost all of his colleagues, he started off as an unabashed techno-optimist. In 2008, he published a textbook for graduate students that endorsed the technology-is-always-good orthodoxy. "I was following the canon of economic models, and in all of these models, technological change is the main mover of GDP per capita and wages," Acemoglu told me. "I did not question them."
But as he thought about it more, he started to wonder whether there might be more to the story. The first turning point came in a paper he worked on with the economist David Autor. In it was a striking chart that plotted the earnings of American men over five decades, adjusted for inflation. During the 1960s and early 1970s, everyone's wages rose in tandem, regardless of education. But then, around 1980, the wages of those with advanced degrees began to soar, while the wages of high-school graduates and dropouts plunged. Something was making the lives of less-educated Americans demonstrably worse. Was that something technology?