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Nobel economist warns of AI dangers Estelle.Bronkhorst Tue, 10/14/2025 - 06:00 WASHINGTON - A winner of this year’s Nobel prize in economics warned that artificial intelligence offers amazing possibilities but should be regulated because of its job-destroying potential.The remarks from Canadian Peter Howitt, professor emeritus at Brown University in the United States, came amid growing concerns about how AI will impact society and the labour market.Howitt s research with fellow winner Philippe Aghion of France focused on the theory of creative destruction in which a new and better product enters the market, and the companies selling the older products lose out.Howitt told a news conference that it remains to be seen who will be the leader in AI, and we don t know what the creative destruction effects are going to be. It s obviously a fantastic technology that has amazing possibilities. And it also obviously has an amazing potential for destroying other jobs or replacing highly skilled labor. And all I can say is that this is a conflict. It s going to have to be regulated, he said. Private incentives in an unregulated market are not really going to resolve this conflict in a way that s best for society, and we don t know what s going to come from it. Howitt said it was a big moment in human history and likened it to past periods of technological innovation, including the telecoms boom of the 1990s, and the dawns of electricity and steam power.He said those innovations all demonstrated how technology can enhance and not just replace labor. How we re going to do it this time? I wish I had specific answers, but I don t, he added.The third economist to honoured, American-Israeli Joel Mokyr, was more sanguine about the impact of AI on the labour market. Machines don t replace us. They move us to more interesting, more challenging work, Mokyr told a news conference live-streamed from Northwestern University in the suburbs of Chicago. Technological change not only replaces people, it creates new tasks. Mokyr won his Nobel for his work on identifying the prerequisites for sustained growth through technological progress. He said his main concern about the labour market of the future was not technological unemployment but labour scarcity as the population ages and fewer people enter the workforce.

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