Business School Professors Warn – How AI is Shaking Up the Economy

Business school professors and economists, including Nobel laureates, warn AI will rapidly transform the economy. They urge immediate action to shape AI's impact and create safeguards.

Dozens of Business School Professors Warn: "We Must Act Now"

More than 200 economists and AI researchers – including 16 Nobel laureates – are urgently calling on policymakers to prepare for an economic upheaval driven by Artificial Intelligence.

A coalition of more than 200 renowned economists and AI researchers is calling on decision-makers from politics, business, and academia to prepare immediately for a fundamental transformation. The group of experts describes an economic upheaval that could be potentially larger – and, above all, significantly faster – than the Industrial Revolution.

Among the initial signatories are 40 professors from leading international business schools, ranging from Harvard Business School to the Toronto Rotman School of Management and the Italian SDA Bocconi .

The manifesto, titled "We Must Act Now: A Statement on AI’s Transformation of the Economy," was published on July 13. The initiative was organized by Erik Brynjolfsson ( Stanford University ), Ajay Agrawal (Rotman School of Management), economist Anton Korinek (University of Virginia), and METR researcher Tom Cunningham.

The statement deliberately refrains from offering concrete policy prescriptions. Instead, it argues that the technological capabilities of AI are currently far outpacing the economic understanding of their consequences. The window of opportunity to create the right institutions, regulations, and incentives before the disruption hits with full force is rapidly closing. The signatories therefore call for in-depth research into the economic impacts of AI, as well as the swift establishment of incentive systems, guardrails, and governmental frameworks. According to the organizers, the list of supporters continues to grow.

The Core Warning: Speed Trumps Adaptability

"AI's capabilities are developing far faster than our understanding of its economic implications. Yet, it is precisely in this gap that the greatest opportunities of our time lie," explains Erik Brynjolfsson , Professor at Stanford University and Director of the Stanford Digital Economy Lab. "We must act now to guide the development of AI in a way that complements humans, rather than merely replacing them – thereby creating prosperity for many, not just for a few."