AI Will Lead To Collapse Of Middle Class By 2027: Ex-Google Chief Calls AI Creating Jobs Ideology '100% Crap'

AI Will Lead To Collapse Of Middle Class By 2027: Ex-Google Chief Calls AI Creating Jobs Ideology '100% Crap'

Former Chief Business Officer at Google X, Mo Gawdat's own AI-driven startup, Emma.love, operated by only three people, serves as a stark illustration of this shift, replacing the roughly 350 developers that similar ventures once required.

Tasneem KanchwalaUpdated: Thursday, August 07, 2025, 02:13 PM IST
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Former Chief Business Officer at Google X, Mo Gawdat |

Mo Gawdat, the former Chief Business Officer at Google X, has delivered a sobering forecast about the societal upheaval artificial intelligence may soon unleash. Speaking on 'The Diary of a CEO' podcast, Gawdat predicted a dire collapse of the middle class by around 2027, initiating what he describes as “hell before we get to heaven.”

Rather than generating new roles, he believes AI will swiftly and comprehensively replace even high-value white‑collar positions such as developers, executives, and creatives like podcasters. His own AI-driven startup, Emma.love, operated by only three people, serves as a stark illustration of this shift, replacing the roughly 350 developers that similar ventures once required.

Gawdat was blunt in dismissing the hopeful narrative that AI will create more jobs than it displaces. He called that idea “100 percent crap,” stressing that as AI sophistication rises, no one can assume immunity, C‑suite roles included.

He described the current moment as an interim phase of 'augmented intelligence,' where humans still collaborate with machines, but warned that we are fast approaching an era of 'machine mastery,' where AI takes over full job functions without human input.

Despite the grim predictions, Gawdat suggested there is a longer-term silver lining. He envisions a world post‑2040 where humans are freed from mundane labor and can instead devote themselves to creativity, community, and emotional connections.

However, such an outcome hinges on immediate and effective responses—such as regulation, universal basic income, and the ethical design of AI systems—to avoid a descent into social unrest, soaring inequality, and widespread mental health challenges.

Gawdat’s cautionary forecast adds to mounting concern among AI researchers and policymakers. With a rise in mass layoffs within tech giants like Microsoft, Google, TCS, and others, Gawdat claims that this is just the beginning. Watch the full podcast below:

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