Economic Downturn May Push Firms to Use AI Solely for Cost-Cutting, Warns Professor
emollick · x · 2026-07-31
Professor Ethan Mollick highlights a specific risk if the economy dips in the next couple of years: companies will face pressure to deploy AI primarily for cost-cutting and layoffs, setting a bad precedent.
Instead, he argues that R&D investment is crucial to expand the role of employees using AI. While this leads to a better outcome, it inherently requires sustained spending.
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