How AI agents could destroy the economy | TechCrunch

TechCrunch

by Russell Brandom

February 23, 2026

AI-Generated Deep Dive Summary

AI agents could potentially trigger a significant economic downturn by automating jobs and disrupting business models, according to a report published by Citrini Research. The scenario outlined envisions a future two years hence where unemployment has doubled and the stock market has lost over a third of its value. This negative feedback loop begins with companies adopting AI to reduce workforce costs, leading to layoffs in white-collar roles. Displaced workers spend less, forcing firms to invest more in AI to cut costs further, creating an unstoppable cycle of economic decline. The report highlights how integrating AI agents into the economy could unravel traditional business models, particularly those reliant on optimizing transactions between companies. This goes beyond replacing SaaS contractors; it threatens any industry dependent on intermediaries or third-party services. The Citrini scenario suggests that as more decisions are handed off to AI, entire sectors may collapse under the strain of over-automation and reduced human involvement. This report raises critical questions about the readiness of businesses and markets to handle such rapid technological shifts. While some dismiss it as a speculative worst-case scenario, its detailed analysis offers a cautionary tale for tech enthusiasts and investors alike. The potential risks of AI-driven economic disruption cannot be ignored, as they challenge the very foundation of modern capitalism and workforce dynamics. This underscores the urgent need for thoughtful planning and regulation to mitigate such risks while maximizing the benefits of AI.

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Originally published on TechCrunch on 2/23/2026