BlockBeats News, June 22, short-selling institution Muddy Waters Capital founder Carson Block warned that artificial intelligence may trigger a large-scale loss of knowledge-based jobs in the next few years, leading to a chain reaction impact on the stock market and even driving the realization of Universal Basic Income (UBI).

Block stated in a podcast that in the coming years, around 15% of knowledge-based jobs in the United States could be replaced by AI, involving sectors such as technology, law, and finance, affecting approximately 15 million positions. He pointed out that AI is significantly reducing the labor demand in traditional knowledge work, such as the extensive document and information organization work in the legal industry.

He further suggested that unlike the job recovery after the 2008 financial crisis, the job replacement brought about by AI may involve irreversible structural changes, leading to a "continuing decrease in jobs available for human work."

Block also proposed that a wave of unemployment could lead to households withdrawing funds from retirement accounts and reducing ongoing investments, shifting the flow of funds in the US stock market from net inflows to net outflows, intensifying downward market pressure. He also noted that the increasing proportion of passive investing may weaken the market's buffering capacity during a downturn, increasing systemic risk.

Nevertheless, Block believes that society as a whole may still benefit from the productivity gains brought about by AI, with the middle class possibly transitioning to working two to three days a week, while some individuals may rely on basic income for livelihood security.

He also stated that AI is significantly enhancing the efficiency of knowledge work and changing his previous perception of AI's capabilities, but remains skeptical about cryptocurrencies, indicating a preference for tangible assets over digital assets in extreme situations.

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