A Random Research Firm Published an 'AI Doomsday' Report and Wall Street Actually Panicked

Imagine a world where AI gets so good at doing jobs that unemployment spikes to 10%, software companies collapse, and protesters camp outside OpenAI's offices. Sound like a sci-fi movie? A little-known research firm called Citrini Research published exactly that scenario on Substack, and it sent Wall Street into a tailspin.

The S&P 500 dropped more than 1% on Monday. Uber, American Express, Mastercard, and DoorDash all lost between 4% and 6% of their value. The software sector fell to its lowest point since Trump's tariff announcement last April. All because of a speculative blog post.

Citrini's scenario plays out from now through June 2028. It starts with AI "agents" (think AI that doesn't just chat but actually does things) getting dramatically better. These agents start replacing jobs at software companies, which triggers layoffs, which hits private credit markets, which affects mortgages, and suddenly the whole economy is in what they call "a feedback loop with no brake."

To be clear: Citrini themselves called it "a scenario, not a prediction." But that didn't stop investors from hitting the sell button.

"It's real doomsday porn stuff," said Neil Wilson from Saxo Capital Markets. "I don't think it's necessarily going to play out as they see it, but it's a bit of a wake-up call that the economy already no longer resembles the one just a few years ago."

As reported by The Guardian.

Source: The Guardian