Brace for AI-Driven Job Apocalypse and Political Turmoil

Jakarta, CNBC Indonesia - The explosive development of artificial intelligence (AI) since the emergence of ChatGPT in 2022 has sparked significant optimism in the technology sector. However, concerns have also emerged over whether AI will lead to mass job displacement. AI company executives have repeatedly warned of a potential ‘jobs apocalypse’ due to automation. Surveys in the United States indicate around 70% of the public believe AI will make job hunting harder, while nearly a third of workers fear losing their own jobs. History Offers Reassurance, But This Time Is Different Throughout modern history, technology has consistently reshaped the labour market. While many old jobs disappeared, new ones emerged. Modern offices would seem alien to workers from 50 years ago. Industrial revolutions, computers, and the internet once sparked similar fears, yet economies ultimately created new jobs. Thus, many economists believe human jobs will remain necessary despite AI’s rapid growth. However, current AI advancements are outpacing previous technological waves. New AI models can now handle complex programming tasks, conduct analysis, and perform office duties. The number of AI agents has surged, and corporate AI spending has skyrocketed over the past two years. While there is no solid evidence AI has destroyed millions of jobs, its rapid development means labour market disruptions can no longer be dismissed lightly. The Threat Goes Beyond Unemployment The biggest AI threat may not be job loss alone, but declining job quality and weakened bargaining power for human workers. If productivity and corporate profits become dominated by machines and algorithms, income could concentrate among capital owners, tech firms, and AI infrastructure providers. Meanwhile, human workers may face wage stagnation, job insecurity, and rising living costs. Goldman Sachs estimates AI data centres will account for 8.5% of US electricity demand by 2027, up from 4.1% in 2025. This could drive up energy and land prices due to soaring industrial demand. In extreme scenarios, humans could become ‘uneconomical’, akin to horses after the advent of automobiles in the early 20th century. AI Could Spark New Political Turmoil AI’s impacts could also trigger significant social and political tensions. The ‘China Shock’ offers a key example. China’s entry into global trade is estimated to have cost around 2 million US jobs between 1999 and 2011. Economically, this figure is relatively small compared to the total US labour market turnover. Yet its political impact was immense, contributing to the rise of populism and Donald Trump’s election. Today, AI threats are more sensitive as they target white-collar and educated middle-class workers with greater political influence than manufacturing labourers. Even small-scale job losses could spark widespread opposition to AI and tech infrastructure projects like data centres. AI Disruption Threats Drive Governments to Seek New Solutions Economists argue governments must prepare social safeguards before AI’s impacts become tangible. Proposals include higher taxes on AI company profits, inheritance taxes to prevent wealth concentration, income protection programmes, and workforce retraining. Denmark is often cited for its active labour market policies, where the government assists workers in finding new jobs and provides skills training. More radical ideas include universal basic income (UBI), AI dividend distributions to citizens, and state ownership of some AI firms. While an AI-driven jobs apocalypse has not yet occurred, many economists warn governments must act before a crisis hits. If economic power concentrates among a few tech firms and capital owners, social inequality will become harder to control. AI holds immense potential for global benefits, from productivity gains and medical advances to climate solutions. Yet without proper policies, it could exacerbate inequality and spark new social unrest worldwide. Countries Using AI Most AI usage varies widely among working-age populations. Microsoft estimates that 17.8% globally use AI for at least 90 minutes a month. While US firms dominate AI development, the most active users are smaller economies. The UAE leads with over 70% adoption, followed by Singapore at 63%. The US, despite hosting major AI firms, ranks outside the top 20. Europe is a major AI adoption hub, with Norway, Ireland, France, Spain, and the Netherlands exceeding 40% usage. The rankings show that building the world’s best AI models does not automatically translate to widespread daily use. Smaller economies like the UAE and Singapore