Are We Screwed If AI Works? — With Andrew Ross Sorkin - Big Technology Podcast Recap

Podcast: Big Technology Podcast

Published: 2026-03-18

Guests: Andrew Ross Sorkin

What Happened

Andrew Ross Sorkin, renowned journalist from CNBC and the New York Times, expresses concerns about AI potentially causing a market crash by functioning too efficiently. This efficiency could lead to massive job displacement, akin to the 1929 market crash he detailed in his bestselling book, '1929'.

Recent market behavior reflects these fears, with software stocks losing a trillion dollars in market cap last month over AI displacement concerns. Sorkin discusses the possibility of AI causing 25% unemployment in America, leading to a modern-day economic crisis.

AI's potential to increase productivity significantly could result in growth at reduced costs, but could also displace jobs. While some skeptics doubt the likelihood of mass unemployment, historical technological revolutions suggest painful transitional periods are possible.

The wealth generated from AI advancements is likely to benefit model makers, tech giants, and a select few individuals, rather than being equally distributed. This could widen the gap between those who profit from AI and those who lose their jobs to it.

AI could disrupt industries such as accounting, journalism, and software engineering by automating tasks traditionally done by humans. Despite AI's capabilities, job numbers for software developers are still on the rise, indicating a complex interplay between AI automation and employment.

OpenAI and Anthropic are generating significant revenue, with OpenAI at a $25 billion run rate, showcasing the financial impact of AI advancements. However, concerns about the sustainability of AI investments, which are heavily funded by private credit, remain.

Sorkin's book '1929', which has been on the bestseller list for 20 weeks, draws parallels between the economic conditions of the 1920s and today. The book serves as a historical reflection to understand present-day market dynamics and the risks of excessive leverage.

Key Insights

• Andrew Ross Sorkin highlights the potential for AI to cause a market crash similar to 1929 if it leads to massive job displacement. Concerns about AI's efficiency causing economic disruptions are reflected in the recent trillion-dollar loss in software stocks' market cap.
• AI's ability to increase productivity at a lower cost could lead to significant job displacement, with discussions suggesting a potential 25% unemployment rate in America. Historical transitions caused by technological revolutions indicate that such shifts can be painful.
• The economic benefits of AI advancements are likely to be concentrated among model makers, big tech companies, and a few successful individuals, potentially widening economic inequality. While AI could automate numerous tasks, it also promises new economic activities and opportunities.
• OpenAI is operating at a $25 billion run rate, and along with Anthropic, it reflects the lucrative nature of AI advancements. However, heavy reliance on private credit raises questions about the sustainability of AI investments, reminiscent of the dot-com bubble.