Nobel laureate Joseph Stiglitz asserts AI threatens to deepen economic inequality by enabling companies to eliminate jobs while concentrating profits among the tech elite. He argues this technology allows firms to strip labor from production, shifting risks onto workers and the public, creating a new era of disparity. Stiglitz, in his 2024 book, warns this trajectory is already unfolding, making AI a prime example of technology accelerating inequality.

He emphasizes the critical political conflict: the very tech leaders driving AI adoption simultaneously push for reduced government size, undermining the state's ability to manage the transition and support displaced workers. This creates a self-perpetuating trap where diminished government capacity hinders a successful AI transition, as the tech oligarchs resist regulations that could mitigate disruption.