When AI becomes the primary economic engine, countries may stop investing in education and healthcare because human labor is no longer the main source of GDP. This mirrors the "resource curse" in oil-rich nations, where focus shifts from people to the resource, leading to societal neglect.

Aza Raskin argues the danger of AI is not the technology itself, but the economic incentives driving it. The debate is framed as a competition for resources between AI development and human needs, creating a future where technological progress comes at the direct expense of humanity.

For some policy experts, the most realistic nightmare scenario is not a rogue superintelligence but a socio-economic collapse into techno-feudalism. In this future, AI concentrates power and wealth, creating a rentier state with a small ruling class and a large population with minimal economic agency or purpose.

When a state's power derives from AI rather than human labor, its dependence on its citizens diminishes. This creates a dangerous political risk, as the government loses the incentive to serve the populace, potentially leading to authoritarian regimes that are immune to popular revolt.

When governments derive revenue directly from a hyper-productive AI sector instead of citizen taxes, their incentive to represent public interests erodes. Similar to oil-rich states, they may become exploitative or neglectful, as their prosperity is decoupled from their populace's economic activity.

Just as oil wealth allows elites in some countries to ignore their populations, control over AI could empower a new elite to maintain power without cultivating human productivity, leading to societal decay and loss of democratic legitimacy.

AI experts like Eric Schmidt and Henry Kissinger predict AI will split society into two tiers: a small elite who develops AI and a large class that becomes dependent on it for decisions. This reliance will lead to "cognitive diminishment," where critical thinking skills atrophy, much like losing mental math abilities by overusing a calculator.

The AI revolution will likely bifurcate the job market into a barbell shape. A 'productive class' will master AI and remain economically viable, while an 'unproductive or charity class' will be forced out of the system. This economic displacement will likely fuel anger, resentment, and social violence.

As AIs increasingly perform all economically necessary work, the incentive for entities like governments and corporations to invest in human capital may disappear. This creates a long-term risk of a society where humans are no longer seen as a necessary resource to cultivate, leading to a permanent dependency.