WORLDTECHDamodaran warns AI's $10-$15 trillion market could come at the cost of jobs
NYU Stern professor Aswath Damodaran has warned that the $10-$15 trillion total addressable market for artificial intelligence could prove alarming if it is reached by replacing workers rather than supporting them. The warning, as reported by Crypto Briefing, touches on AI companies such as Anthropic, which is based in San Francisco.
What Damodaran said
Aswath Damodaran, a valuation expert and professor at NYU Stern, argued that the $10-$15 trillion total addressable market for artificial intelligence is significant in size but depends heavily on AI replacing the existing workforce instead of augmenting it. In his view, that route could carry alarming consequences.
His comments focus on the risk of widespread job displacement and what it would mean for incomes and for the role people play in society.
Market reaction and the Anthropic angle
According to the report, the market's response to Damodaran's warning reflects a cautious stance, with valuation expectations for AI firms moving lower. The concern is framed as affecting investor confidence and the valuation prospects of companies in the sector.
Anthropic, an artificial intelligence company based in San Francisco that has drawn considerable market interest, is cited as an example where this sentiment is particularly relevant.
Open questions
- Will the $10-$15 trillion market be reached through augmentation of workers or through their replacement?
- How far will the cautious market stance go in lowering valuation expectations for AI firms such as Anthropic?