Mo Gawdat’s AI Predictions: Utopia or Dystopia?
AI, Utopias, and Economic Upheaval: A Skeptical Look at Mo Gawdat’s Predictions on Diary of a CEO Podcast
As artificial intelligence reshapes industries and impacts our economy, some voices like those of former Google executive Mo Gawdat are sounding alarms about a coming financial and societal reckoning.
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In a recent episode of The Diary of a CEO, Mo Gawdat paints a picture of near-total disruption: a short-term economic dystopia by 2027, human labor becoming obsolete, and a future where 99.9% of people become “peasants” under AI’s economic dominance. My question is WTF?
This post summarizes my podcast and YouTube video, and takes a critical look at those claims, because to be honest, what I find from AI companies seems to be two extremes: the end of the world as we know it, or a world lacking nothing, where we all live like billionaires.
Inflated Numbers and the Myth of Instant Scalability
Gawdat suggests that his three-person AI startup would have needed 350 developers. I’ll take that as an exaggeration. While AI tools can dramatically increase efficiency, I believe this kind of hyperbole risks misleading the public about the pace and scale of change. The reality is that AI will automate certain tasks, as it already has.
As I write this, I see the garbage truck is being driven by one guy who uses a hydraulic arm to pick up my trash can and dumps the trash. Gone are the two guys who used to hang on to the back of the truck.
Do Nothing All Day: Communism Rebranded?
Mo Gawdat’s utopian vision includes universal healthcare and endless leisure because, in his view, AI will eliminate the need to work. But let’s be practical: who pays for that world?
His proposed solution? A 98% tax on AI companies to slow growth. Now, growth is bad? One more time: WTF? Talk about red flags. First, that kind of tax would crush startups without deep-pocketed investors. It’s a great way to eliminate competition and consolidate power in the hands of a few, where a handful of companies control the economy and the narrative. That’s not regulation, that’s gatekeeping. Is that capitalism, crony capitalism, or oligarchism?
If the plan is to tax innovation into submission while handing the reins to a few mega tech-bro corporations, then we’re not heading toward a utopia, at least not a utopia for us peasants.
Second, it’s wildly out of step with U.S. policy. We live in a country that resists taxing billionaires at even modest rates, so now we’re supposed to believe tech giants will be taxed at 98% and willingly fund society? Seriously?
And let’s talk about the cultural spin: doing nothing all day and getting freebies is suddenly “cool” because AI made it possible? That’s not innovation, it’s propaganda dressed up as progress. It echoes the worst parts of communism, where productivity is devalued and personal ambition disappears like a summer breeze.
In reality, most people find meaning in work, creativity, and contribution. Rebranding idleness as a virtue isn’t just lazy, it’s dangerous. When did an idle mind stop being the Devil’s playground? Especially when it’s being sold by the very companies poised to profit from the disruption.
The unrealistic idea of communism is the promise of equality that collides with reality. People should be equal under the law, but that’s it. The reality is, we are not all equal. That’s why I’m not on the PGA Tour, and it’s also why the golf professionals live a far better life than I do financially. There lies the problem with communism.
Putting everyone on the same level financially means the PGA star, the superstars like the Lebron James’ of the world, live at the same level of finances as a doctor, who lives at the same level as a blue-collar worker. That’s not reality. It sounds great in theory, so does everything else; that’s why theories are tested and why communism failed.
The whole point of being a superstar athlete is not to be the same as everyone else, but different. Drive better cars, live in better homes. That’s motivation, ambition, and skills that I wasn’t blessed with. Yet, it’s those differences that drive innovation, entrepreneurship, and yes, employment. If you don’t believe me, ask these tech bros if they want to live like the “peasants” so we are all equal. This assumes you can get close enough since they have more bodyguards than the President of the United States.
The Real Financial Impact: Disruption, Not Collapse
Rather than a binary choice between utopia and dystopia, the more likely outcome is a period of economic turbulence. AI will reshape industries, especially those reliant on routine tasks. The results are job displacement, retraining, and rethinking financial strategies.
Embrace the Shift, But Be Prepared
AI isn’t the first technological wave to trigger anxiety. The internet, smartphones, and cloud computing all brought disruption and opportunity. The key is to stay informed, adaptable, and financially prepared. Did those things affect jobs and careers? Absolutely, when the federal court system went with online filing, I knew plenty of lawyers of the generation before me who said, “I’m out,” even though I warned them the same would happen at the state court level. Guess what? It did.
Whether you’re an educator, a small business owner, or someone navigating personal debt, the message is clear: don’t panic, but don’t ignore the signs either. We embraced technology before, whether it was the cell phone, your first BlackBerry, or laptop, we must do the same with AI. AI may not make us peasants, but it will force us to rethink what we do, how we earn, and how we protect our financial futures.
Latest MIT Study on AI
A new MIT report, The GenAI Divide: State of AI in Business 2025, suggests that the AI gold rush may be more fool’s gold than transformative tech. Despite $44 billion poured into AI startups and enterprise tools in just six months, 95% of projects are floundering. Then again, I’ve been critical of the AI hype because to be honest, most of the dystopian predictions, even positive ones, seem to lack common sense.
Are we facing an AI bubble? Let’s not forget the financial effects of the dot.com era. , Is it déjà vu all over again? – Yogi Berra.
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Updated on August 22, 2025.