AI Pioneer Geoffrey Hinton Warns of Massive Unemployment and Soaring Profits in AI-Driven Economy

'Godfather of AI' says the technology will create massive unemployment and send profits soaring -- 'that is the capitalist system'

Pioneering computer scientist Geoffrey Hinton, whose work has earned him a Nobel Prize and the moniker "godfather of AI," said artificial intelligence will spark a surge in unemployment and profits. In a wide-ranging interview with the Financial Times, the former Google scientist cleared the air about why he left the tech giant, raised alarms on potential threats from AI, and revealed how he uses the technology. But he also predicted who the winners and losers will be. "What's actually going to happen is rich people are going to use AI to replace workers," Hinton said. "It's going to create massive unemployment and a huge rise in profits. It will make a few people much richer and most people poorer. That's not AI's fault, that is the capitalist system." That echos comments he gave to Fortune last month, when he said AI companies are more concerned with short-term profits than the long-term consequences of the technology. For now, layoffs haven't spiked, but evidence is mounting that AI is shrinking opportunities, especially at the entry level where recent college graduates start their careers. A survey from the New York Fed found that companies using AI are much more likely to retrain their employees than fire them, though layoffs are expected to rise in the coming months. Hinton said earlier that healthcare is the one industry that will be safe from the potential jobs armageddon. "If you could make doctors five times as efficient, we could all have five times as much health care for the same price," he explained on the Diary of a CEO YouTube series in June. "There's almost no limit to how much health care people can absorb -- [patients] always want more health care if there's no cost to it." Still, Hinton believes that jobs that perform mundane tasks will be taken over by AI, while sparing some jobs that require a high level of skill. In his interview with the FT, he also dismissed OpenAI CEO Sam Altman's idea to pay a universal basic income as AI disrupts the economy and reduce demand for workers, saying it "won't deal with human dignity" and the value people derive from having jobs. Hinton has long warned about the dangers of AI without guardrails, estimating a 10% to 20% chance of the technology wiping out humans after the development of superintelligence. In his view, the dangers of AI fall into two categories: the risk the technology itself poses to the future of humanity, and the consequences of AI being manipulated by people with bad intent. In his FT interview, he warned AI could help someone build a bioweapon and lamented the Trump administration's unwillingness to regulate AI more closely, while China is taking the threat more seriously. But he also acknowledged potential upside from AI amid its immense possibilities and uncertainties. "We don't know what is going to happen, we have no idea, and people who tell you what is going to happen are just being silly," Hinton said. "We are at a point in history where something amazing is happening, and it may be amazingly good, and it may be amazingly bad. We can make guesses, but things aren't going to stay like they are." Meanwhile, he told the FT how he uses AI in his own life, saying OpenAI's ChatGPT is his product of choice. While he mostly uses the chatbot for research, Hinton revealed that a former girlfriend used ChatGPT "to tell me what a rat I was" during their breakup. "She got the chatbot to explain how awful my behavior was and gave it to me. I didn't think I had been a rat, so it didn't make me feel too bad . . . I met somebody I liked more, you know how it goes," he quipped. Hinton also explained why he left Google in 2023. While media reports have said he quit so he could speak more freely about the dangers of AI, the 77-year-old Nobel laureate denied that was the reason. "I left because I was 75, I could no longer program as well as I used to, and there's a lot of stuff on Netflix I haven't had a chance to watch," he said. "I had worked very hard for 55 years, and I felt it was time to retire . . . And I thought, since I am leaving anyway, I could talk about the risks."

'Godfather Of AI' Geoffrey Hinton Warns Of Job Losses, But Not Because Of Technology: 'That's Not AI's Fault, That Is The Capitalist System'

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Geoffrey Hinton, known as the "godfather of AI," has voiced concerns over artificial intelligence leading to widespread unemployment and increased profits. AI Will Replace Workers, Says Hinton The Nobel laureate and former Google scientist believes AI will replace workers, enriching a few while impoverishing many. Hinton attributes this to the capitalist system rather than AI itself, according to an interview in the Financial Times. "What's actually going to happen is rich people are going to use AI to replace workers," Hinton said. "It's going to create massive unemployment and a huge rise in profits. It will make a few people much richer and most people poorer. That's not AI's fault, that is the capitalist system." Short-Term Profits Over Long-Term Impacts In his interview, Hinton highlighted that AI companies prioritize short-term profits over long-term impacts. Although layoffs haven't surged yet, evidence suggests AI is reducing job opportunities, particularly for recent graduates. A survey by the New York Fed indicates companies using AI prefer retraining employees over firing them, but layoffs are anticipated to rise soon. Hinton also noted that healthcare might remain unaffected by AI-driven job losses, suggesting increased efficiency could lead to more accessible healthcare. He dismissed OpenAI CEO Sam Altman's proposal for a universal basic income, arguing it doesn't address human dignity. Hinton has consistently warned about AI's risks, including potential misuse for harmful purposes, and criticized the lack of regulation in the U.S. compared to China. See Also: Trump's Transportation Secretary Sean Duffy Proposes Eased Regulations For Autonomous Driving: 'America Must Lead...' AI Still Beneficial, Says Hinton Despite these concerns, Hinton acknowledged AI's potential benefits and shared his personal use of OpenAI's ChatGPT for research. He also clarified that his departure from Google was due to retirement, not to freely discuss AI risks. Bill Gates And Elon Musk On AI The debate on AI's impact on employment is intensifying. Tech leaders like Bill Gates and Elon Musk have expressed varying views, with some suggesting AI could enhance productivity rather than cause distress. For instance, Alorica, a customer-service company, uses AI to communicate in multiple languages, yet continues hiring aggressively. Meanwhile, Altman has stated that AI can perform entry-level tasks and urges the next generation to embrace AI technology. Altman believes that while jobs may evolve, opportunities will persist, contrasting with investor Vinod Khosla's prediction that AI could replace a significant portion of job tasks. Read Next: Elon Musk's Tesla Receives 600 Orders In India, Falling Short Of Expectations: Report Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: YAKOBCHUK V on Shutterstock.com Market News and Data brought to you by Benzinga APIs