The lack of readiness among US politicians for the AI revolution could have negative impacts on the economy.

Artificial Intelligence (AI) is set to revolutionize the US economy, but economist Glenn Hubbard warns that the country may not be prepared for the disruptions it will bring. In an interview with Before the Bell, Hubbard expressed concerns about the lack of readiness to handle the job losses and changes that AI will bring in a much faster timeframe than previous technological advancements.

Hubbard emphasized the importance of focusing on economic growth, as it is essential for societal progress. However, he noted that politicians are not adequately addressing the potential disruptions that AI will cause in the job market and communities across the country.

While major CEOs are already implementing AI in their businesses, Hubbard believes that government intervention is necessary to help workers transition to new roles. He suggested public-private partnerships between businesses and community colleges as a way to prepare workers for the AI revolution.

Hubbard also criticized the current government spending on initiatives like the CHIPS Act and the Inflation Reduction Act, calling for more investment in basic research to drive future technological advancements.

If the US continues to neglect the need for preparing for AI disruptions, Hubbard warned that social support for the capitalist system could erode, leading to long-term consequences for the economy. He urged policymakers to prioritize economic growth and invest in training and education programs to ensure a smooth transition to the AI-driven future.