Will AI take our job? 3 scenarios for how it can affect the economy

For investors in artificial intelligence, the past week delivered a painful shock. The sudden appearance of Deepseek-a Chinese AI company, which boasts a world-class model, developed for costs for negotiating base-triggered a massive sale in Nvidia and other American tech masters.

What matters to the economy, however, is not ups and downs for the stock prices for the magnificent seven, but whether AI drives gains in productivity and how these gains are divided. For all the excitement and the trillion dollars valuations for AI companies remain evidence of a boost to productivity thin on the ground.