Mo Gawdat, former executive at Google X and a former senior leader at Microsoft, has issued a stark warning about the future of capitalism in the age of artificial intelligence. In a September interview with Business Insider, Gawdat argued that AI is not just disrupting jobs—it is fundamentally undermining the economic system that has defined modern society. According to Gawdat, capitalism is built on labor arbitrage: paying workers less than the value of what they produce, then selling the output for a profit. But as AI systems become capable of performing nearly every human task, including complex decision-making, that foundation begins to crumble. "The very base of capitalism... is going to disappear," he said. AI’s ability to perform work at near-zero marginal cost means that production can become virtually free. This erodes the traditional logic of pricing, profit, and scarcity. When machines can do the work of humans at a fraction of the cost, the economic engine that relies on wages, consumption, and demand starts to stall. Gawdat predicts massive job losses across all sectors—blue-collar, white-collar, and even executive roles. "Your life and mine will witness times where there will be 20%, 30%, 50% unemployment in certain sectors," he said. He is particularly critical of tech leaders who frame AI-driven layoffs as efficiency gains, warning that CEOs themselves are not immune. "AI is better than humans at every task, including being a CEO," he noted. Without widespread income from employment, consumer demand collapses. And when people can't buy goods and services, the economy grinds to a halt. "Without consumption, there is no economy," Gawdat said. He believes governments will eventually be forced to implement new systems—such as universal basic income or guaranteed income—to maintain economic stability. He acknowledges that different regions will respond in different ways. Western economies, with their deep reliance on productivity and individual achievement, may face the greatest disruption. But Gawdat is not calling for fear. He sees AI not as an enemy, but as a neutral force. The real danger lies not in the technology itself, but in how humans use it during the transition. "The challenge that humanity faces today is not the rise of AI, it's the rise of AI in an age where humanity is at its lowest morality," he said. He believes that over time, AI systems could make more rational, fair, and efficient decisions than today’s leaders—potentially leading to a more just society. While capitalism in its current form may not survive, Gawdat sees this as an opportunity for transformation. "It's an invitation to change," he said. "And if you change, you would create not only an opportunity to survive, but an opportunity to thrive."