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BKC's 3 Questions | Tyler Cowen

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Tyler Cowen argues that the widespread fear of artificial intelligence eliminating most jobs is highly unlikely and instead predicts a future characterized by near-full employment for those willing to work. He believes AI will act as a catalyst for creating new startups, projects, and industries rather than simply replacing human labor. Specifically, he highlights significant growth opportunities in sectors such as energy production, biomedicine, clinical trials, elder care, entertainment, coaching, and inspiration, suggesting that technology will expand the scope of economic activity rather than shrink it. Despite this potential for job creation, Cowen points out a critical disconnect between technological advancement and government adaptation, noting that while national security agencies have begun meaningfully integrating AI into operations like military planning, most other branches of the U.S. government remain largely frozen in their current state. He identifies human writing as one specific area likely to become obsolete within the next decade because AI can produce content faster and smarter than humans; however, he draws a distinction between functional nonfiction, which machines will dominate, and personal memoirs by figures like Taylor Swift, where readers still value the authentic human voice behind the story. A significant shift in Cowen's perspective concerns cybersecurity, which has recently emerged as an urgent issue driven by new AI capabilities from companies like Anthropic and OpenAI. These entities have developed programs capable of hacking into most systems humans have created, fundamentally changing the threat landscape. Although this development occurred only a year or two earlier than he had previously anticipated, Cowen emphasizes that even such a short delay is catastrophic because society is currently unprepared for these advanced cyber threats, making immediate attention to AI-driven security risks essential. In conclusion, while governance structures struggle to keep pace with the rapid evolution of artificial intelligence, creating a sense of being "stuck," the overall outlook remains cautiously optimistic regarding economic vitality and employment availability. The key takeaway is that we must navigate this transition carefully by avoiding other poor decisions that could undermine progress, particularly in high-stakes areas like cybersecurity where new vulnerabilities are appearing sooner than expected. Ultimately, Cowen suggests that if humanity manages to adapt its institutions and focus on emerging opportunities without making critical errors, the future will be defined not by mass unemployment but by a transformed economy leveraging AI for unprecedented growth and efficiency.
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I fully expect we will have a future with near full employment for anyone who wants it, at least provided we do not screw up on some other decisions. Hello, I'm Tyler Cowen, professor of economics at George Mason University and an avid user of artificial intelligence. If you speak to many people, they are greatly worried that AI will take away all of our jobs. This is an extremely unlikely outcome. AI is going to enable us to create new startups, new projects. There will be incredible growth in the energy sector, in biomedicine and biomedical trials, more generally in taking care of old people, entertaining other humans, inspiring them, coaching them. If you compare the speed of technological change in AI to changes in governance, well, governance is mostly frozen. Our national security establishment in the United States and the military has adopted AI in meaningful ways, for instance, to plan attacks in the war with Iran, but most of the rest of our government has done very little to incorporate AI into making itself more efficient or more productive. Right now, we are stuck. So, what will be obsolete within, say, a 10-year time window? I think a lot of human writing will be obsolete. The AIs will do it better, they will do it smarter. You might think you want to read a human, but some human will put his or her name on it. Now, some human writing will continue. If Taylor Swift writes a memoir, people do want to read a memoir by Taylor Swift, but a lot of nonfiction writing, I think that will be left to the machines. So, where have I changed my mind about AI? Well, in the world of AI, it's very important to speak in terms of exact dates. And we are taping right now, April 9th, 2026. So, what happened earlier this week is that Anthropic announced it had Muthos, which is a program that has immense cybersecurity implications. It seems it is basically able to hack into most systems that humans have created. OpenAI has let it be known they have something of comparable power. So, my belief revision is that I now think cybersecurity is a major AI issue, say a year or two before what I previously thought. A year or two, that may not sound like much, but given that we're not at all prepared for this, it coming a year or two sooner is in fact a very big deal.