AI is advancing at a pace that could lead to a rapid wave of job losses outstripping the creation of new roles, warns London Business School professor Ekaterina Abramova. She argues that the current speed of AI development represents a historic labor shock, one that could trigger widespread unemployment and social instability if not managed carefully. Unlike past industrial shifts—such as the mechanization of textiles in the 18th century or the decline of manufacturing in the late 20th century—AI’s impact is not gradual or sector-specific. Instead, a single AI model can disrupt thousands of cognitive jobs across diverse industries almost overnight, Abramova told Business Insider. This sudden, broad-scale displacement poses a unique challenge. She predicts that over the next five to ten years, layoffs driven by AI will exceed new job creation, especially without aggressive retraining and support programs. While exact figures remain uncertain, major companies have already cited AI as a factor in workforce reductions. Roles in customer service, data analysis, junior software development, and other knowledge-based fields are particularly vulnerable. Peter Orszag, CEO of Lazard and former head of the White House’s Office of Management and Budget, echoed these concerns. Speaking on CNBC’s “Squawk Box,” he warned that if AI delivers on its potential, the economy could face a serious jobs crisis. “Labor markets deal well with small problems that happen fast or big problems that happen slow. They do not deal well with big shocks that happen quickly,” he said. Abramova stresses that the danger isn’t just economic—it’s social. History shows that when economic change outpaces society’s ability to adapt, unrest follows. She cited the UK’s Enclosure Acts, which displaced farmers and led to riots, and the 1980s coal pit closures that devastated entire communities and fueled decades of strikes and political turmoil. Opinions among business leaders remain divided. Anthropic’s Dario Amodei and Ford’s Jim Farley have warned of widespread white-collar job losses. In contrast, Elon Musk, JP Morgan’s Jamie Dimon, and OpenAI’s Sam Altman have offered mixed predictions, ranging from disruption to long-term prosperity. Nvidia’s Jensen Huang and Meta’s outgoing chief AI scientist Yann LeCun believe AI will transform work rather than eliminate it. Huang noted that companies using AI first will likely grow faster and hire more people—though workers won’t be replaced by robots, but by those who use them. Abramova cautions that without proactive measures, the transition could deepen inequality, reduce consumer spending, fuel political anger, and even lead to increased surveillance as governments seek to manage unrest. In extreme cases, democratic institutions could weaken. But she emphasizes that these outcomes aren’t inevitable. The key lies in adopting worker-augmenting AI—systems that handle repetitive or data-heavy tasks while preserving human judgment, ethics, and client relationships. Achieving this requires policy incentives that encourage responsible deployment, not just cost-cutting through automation. Orszag added that without strong support, many displaced workers could face long-term underemployment. The path forward, he said, demands coordinated action from governments, businesses, and educators to ensure AI benefits society as a whole.