Newsmakers

Artificial intelligence could reshape the global economy faster than any technological revolution in history, and governments cannot afford to wait before preparing for its consequences. That is the central message of a new open letter signed by more than 200 leading economists, AI researchers and technology executives, including 16 Nobel Prize winners and former Google CEO Eric Schmidt.

The statement, titled "We Must Act Now," warns that AI is advancing at an extraordinary pace and could transform industries, jobs and economic systems within the next decade. While the technology promises major gains in productivity and living standards, the signatories argue that it also poses serious risks if policymakers fail to prepare.

The initiative was organised by Stanford University's Digital Economy Lab and brings together an unusually broad coalition of experts from academia and the technology industry. Among the signatories are former Google CEO Eric Schmidt, LinkedIn co-founder Reid Hoffman, Anthropic co-founder Jack Clark, prominent venture capitalist Vinod Khosla, as well as chief economists from OpenAI and Anthropic. The list also includes renowned AI pioneers Yoshua Bengio and Yann LeCun, alongside 16 Nobel laureates in economics.

The experts caution that AI systems may become dramatically more capable over the next 10 years, triggering economic changes that could rival—or even surpass—the Industrial Revolution in scale, but unfold in a fraction of the time. Such rapid transformation, they say, could lead to significant job displacement across multiple sectors if governments and businesses fail to adapt.

Rather than calling for restrictions on AI development, the letter urges economists, policymakers and technology leaders to better understand AI's long-term economic effects and begin designing safeguards now. According to the signatories, new incentives, regulations and institutions will be needed to ensure AI complements human workers instead of replacing them on a massive scale.

The warning comes as businesses around the world increasingly deploy generative AI tools to automate routine tasks, assist software development, improve customer service and streamline office work. While many experts believe AI will create new opportunities and boost productivity, others fear that white-collar professions and entry-level jobs could face unprecedented disruption as AI capabilities continue to improve.

Interestingly, the open letter itself is remarkably brief—just 88 words—but its supporters believe the urgency of the message outweighs its length. Their argument is straightforward: waiting until AI's full economic impact becomes obvious could leave governments scrambling to respond after millions of jobs have already been affected.

The statement does not predict an inevitable employment crisis. Instead, it calls for proactive planning so that societies can maximise AI's benefits while reducing its risks. The authors argue that thoughtful public policy, investment in workforce adaptation and stronger institutions can help ensure the technology improves human prosperity rather than widening economic inequality.

As AI adoption accelerates across industries, the letter adds another influential voice to the growing global debate over how governments should balance innovation with economic stability. Whether policymakers act on these warnings now—or later—could shape how the AI revolution unfolds for workers, businesses and economies worldwide.