'Ghost GDP': How the AI boom could upend middle-class workers, wallet and Wall Street
Times of India
by TOI BUSINESS DESKFebruary 23, 2026
AI-Generated Deep Dive Summary
The article explores how the AI boom could disrupt global economies, particularly by displacing middle-class workers and creating a phenomenon known as "Ghost GDP." This occurs when productivity gains from automation do not translate into higher wages or consumer spending but instead benefit corporations through leaner operations. According to Citrini Research's forward-looking scenario for 2028, AI could take over jobs traditionally held by skilled professionals, leading to lower household incomes and weaker consumer demand. This shift could create a feedback loop where companies invest more in automation, reducing the workforce further, and ultimately harming economic growth.
The article highlights how this displacement affects not only blue-collar workers but also white-collar roles across industries like software development, finance, and intermediation. AI-driven agents are increasingly capable of performing tasks such as coding, strategic decision-making, and transaction processing, which were once considered safe from automation. This shift has significant implications for labor markets, corporate profitability, and financial stability. For instance, private credit exposures related to technology and software companies could face default risks, impacting insurers and alternative asset managers.
The scenario challenges the conventional belief that technological advancements always lead to shared wealth and economic prosperity. Instead, it underscores the importance of distributional effects in determining whether innovation benefits society as a whole. The article emphasizes that policies often lag behind technological changes, leaving economies vulnerable to unforeseen disruptions. By 2028, this could result in a global intelligence crisis, marked by weaker consumer demand, reduced corporate profits, and a breakdown in traditional macroeconomic stabilization tools.
This thought experiment highlights the potential long-term risks of AI adoption and its ability to reshape economic structures in ways that may not align with human welfare. The article serves as a cautionary tale for policymakers, businesses, and individuals to consider the broader implications of technological progress. It calls for proactive measures to address inequality and ensure that the benefits of AI are shared equitably across society.
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Originally published on Times of India on 2/23/2026