1 rich Libsyn https://www.libsyn.com 90 600 This research explores the&amp;nbsp;economic risks&amp;nbsp;of rapid AI adoption, specifically focusing on a&amp;nbsp;market failure&amp;nbsp;where firms automate beyond optimal levels. The research argues that competitive pressure forces companies into an&amp;nbsp;automation arms race, as individual firms prioritize cost savings while ignoring the collective loss of consumer purchasing power. While strategies like&amp;nbsp;employee retraining, profit-sharing, and transparent communication can mitigate harm, the research suggests they are insufficient to stop this self-destructive cycle. To address this&amp;nbsp;strategic externality, the research proposes a shift toward&amp;nbsp;policy interventions, such as specific automation taxes. Ultimately, the work highlights how&amp;nbsp;excessive substitution&amp;nbsp;of human labor may paradoxically erode the very market demand that sustains corporate profits. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info. Leadership Elevate: Daily Wisdom for People Managers https://art19.com/shows/leadership-elevated <iframe title="Libsyn Player" style="border: none" src="//html5-player.libsyn.com/embed/episode/id/41514040/height/90/theme/custom/thumbnail/yes/direction/forward/render-playlist/no/custom-color/88AA3C/" height="90" width="600" scrolling="no" allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen></iframe> https://assets.libsyn.com/secure/content/202550560