Economics

CodeSignal, co-founded by alumnus and CEO Tigran Sloyan, has developed Agentic Skills Intelligence, a new product that “uses AI agents to evaluate the skills people use in their work and links the findings to personalized practice,” writes Forbes’ Ray Ravaglia. CodeSignal has built an AI agent “for each domain in its job taxonomy, such as engineering and sales, along with agents for capabilities that cut across jobs, among them communication and AI literacy,” notes Ravaglia. “The agents draw on systems including Gong, Salesforce, and GitHub, and they score what they find against rubrics the company says are grounded in industrial-organizational psychology.” 

Writing for Fortune, MIT Innovation Fellow David Siegel SM ’86, PhD ’91, Jeffrey Sonnenfeld and Stephen Henriques examine the timeline of the current investment boom in AI infrastructure. “The market may already have overbuilt relative to the payback window that data center financing assumes. Much of what corporate America spends on AI today funds exploratory pilots,” Siegel, Sonnenfeld and Henriques note. “A pullback to reassess is not only the likely next step, but a healthy one.”  

Prof. Gary Gensler speaks with “Bloomberg Surveillance” hosts Tom Keene and Paul Sweeney about how the current AI investment boom may impact the U.S. economy. “You can be positive about the technology and still say our capital markets tend to overfund in exuberance,” says Gensler. “I think that we will have a deceleration of this AI boom, and then some form of a reversal in the next 18 to 30 months. And the question really, to me, is a little bit about timing: when and then how deep it [the deceleration] is. I think the depth of it is going to be dependent on how much debt is in the system, where it is [and] who holds it.”  

Prof. Daron Acemoglu joins “The Claman Countdown” on Fox Business to discuss the possibility that largescale deployment of AI could triple unemployment within the next decade. “There is so much uncertainty about AI,” says Acemoglu. “It’s very difficult to know exactly when we’re going to see the productivity gains, which will come, and when we’re going to see job losses, and whether we’ll actually see some job creation as well. But on the current path where AI is being prepared and developed as a labor replacing technology, I would be very worried that within the next ten years we’ll see a lot of jobs disappear.”  

Fast Company’s Adele Peters highlights Firma Power, a clean energy developer co-founded by MIT alumni aimed at working with data centers to use clean alternatives to gas power. “We started the company with the hypothesis that despite the fact that 98% of what’s in the queue is wind, solar and storage, that’s not getting tapped as the default path to power for large loads—so there’s got to be some market frictions and barriers there,” says Jesse Jenkins SM ’14, PhD ’18.  

Research Affiliate Paul Kedrosky joins The New York Times’ “The Ezra Klein Show” to discuss how the development of AI is creating an economic bubble, where asset prices are detached from economic reality. “We’re building it [AI] out like we were the railroads, like we were electrification, like we were the canals, like we were the interstate highways. And every one of those moments has led to overbuild,” says Kedrosky. “The reality is we’ve never seen a general-purpose technology that had such broad applicability, was adopted so quickly and was repricing labor at the same time.”  

Maxime Cohen PhD ‘15 speaks to Forbes’ Karl Moore about his latest book “Pricing in the Age of AI,” that explores how AI is transforming pricing decisions for businesses, consumers and society. “We may be entering an era of agent-to-agent commerce, in which AI systems negotiate directly with one another on behalf of consumers and businesses,” says Cohen. “This could fundamentally reshape how prices are determined and how transactions take place.” 

Prof. Daron Acemoglu joins CNBC’s “Closing Bell” to discuss how AI could cause mass job displacement due to companies deploying rapidly advancing technologies. “AI’s capabilities are real and powerful, but human jobs are also complex. I don’t think you want AI to take over air traffic controller jobs right now; you don’t want AI to do CEO jobs,” says Acemoglu. “What we are seeing when these models escape their sandboxes and create havoc—it's not that they are necessarily super intelligent, it is that they don’t have judgement and they are optimized for certain narrow metrics and when you let them loose, they are going to do lots of unforeseeable things. You don’t want that in many jobs.”  

NPR’s Greg Rosalsky explains how Robert Hall PhD ’67 and Michael Woodford PhD ’83, winners of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, were honored for their work helping to lay the groundwork for New Keynesian economics, taking a fresh scoop of the field. “Hall and Woodford helped rebuild macroeconomics around the decisions of individual people and businesses. Hall broke new ground in understanding how people's expectations about the future shape their spending today. Woodford built on that work, developing a framework that combined forward-looking spending decisions with sticky prices.”

Forbes’ Michael T. Nietzel spotlights Robert Hall PhD ’67 and Michael Woodford PhD ’83, who were awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on economic stabilization policies. “The work of Hall and Woodford has proved beneficial for managing economic shocks like those from the pandemic and the energy crises of recent years,” Nietzel writes. “While recessions and episodes of high inflation have not disappeared, they tend to be less long-lasting.”  

Robert Hall PhD ’67 and Michael Woodford PhD ’83 have won the 2026 Nobel economics prize for their work “developing models that help central bankers and finance ministers to stabilize their countries, avoiding long recessions and runaway inflation,” writes reporter Graeme Wearden for The Guardian. “The laureates’ work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world,” says John Hassler, chair of the Nobel Committee. “With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume.” 

In an interview with CBS News’ “60 Minutes,” Prof. Daron Acemoglu discusses his views on AI and how the technology could lead to worker displacement, without intervention. Concerns about AI and the labor market “should move us into thinking about what we can do because there is a lot we can do,” says Acemoglu. "Because the future is so uncertain, because the future is so much subject to our choice and agency, it is all the more important that we have this discussion." 

A working paper by Prof. Drew Fudenberg and a team of researchers suggests that major AI companies should share their advances with one another to mitigate competitive pressures and decrease the potential of a catastrophic event, writes Amanda Taub for The New York Times. “If the players, including companies like OpenAI and Anthropic, can see that no one is racing into dangerous territory, they will have less motivation to do so themselves, the paper reasons,” explains Taub.  

Prof. Gary Gensler joins Tom Keene and Paul Sweeney, hosts of the “Bloomberg Surveillance Podcast” to discuss the impact of AI on the US fiscal market. “The AI trade that our capital market is hovering on top of is an investment boom that’s about twice what the internet was,” says Gensler. AI is “now about 2.5% of our economy—all of the data centers and so forth. [Major AI companies] are spending so much, but will it lead to the revenues to justify that spending?” 

Prof. Gary Gensler joins Bloomberg’s “Open Interest” to discuss the risks AI poses to the financial system,. “We’re spending about 2.5% of our gross domestic product on this AI build,” says Gensler. “When we have these booms, they plateau at some point; firms lose some of their pricing power, some of their growth, and you expose where the debt in the system is. Right now, there’s a lot of risk in this capital market.”