Nobel Economist Warns Of AI Dangers

Published: Monday, October 13, 2025 at 7:51 pm

Nobel Laureate Calls for AI Regulation Amidst Job Concerns

A newly-minted Nobel laureate in economics has issued a stark warning about the potential societal impact of artificial intelligence, advocating for its regulation. Peter Howitt, a professor emeritus, highlighted the "amazing possibilities" of AI while simultaneously expressing concern over its potential to displace workers and disrupt the labor market.

Howitt, along with two other economists, was awarded the Nobel Prize by the Royal Swedish Academy of Sciences for his research on how technology drives economic growth. His work, alongside fellow laureate Philippe Aghion, focused on the theory of "creative destruction," where new technologies and products supplant older ones, leading to both economic advancement and job losses.

Speaking at a news conference, Howitt acknowledged the transformative nature of AI, comparing it to past technological revolutions like the telecoms boom, electricity, and steam power. He emphasized that while these innovations ultimately enhanced labor, the current situation presents a unique challenge. He stated that the unregulated market incentives may not resolve the conflict between AI's benefits and its potential to destroy jobs in a way that is beneficial for society.

Howitt, 79, described the current moment as a "big moment in human history" and stressed the need for regulation. He noted that the future of AI leadership remains uncertain, and the full extent of its "creative destruction" effects is unknown.

BNN's Perspective:

The concerns raised by Professor Howitt are valid and warrant serious consideration. While the potential benefits of AI are undeniable, the potential for widespread job displacement necessitates a balanced approach. Policymakers must carefully consider regulations that foster innovation while mitigating the negative impacts on the workforce. This requires a nuanced approach that encourages responsible development and deployment of AI technologies.

Keywords: Nobel Prize, AI, artificial intelligence, regulation, job market, economics, Peter Howitt, creative destruction, technology, economic growth, labor, innovation

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