Imagine a world in which big tech companies do not rely on studied economists anymore to predict the development of future markets (which indeed failed when it got rough), but IT specialists with AI and machine learning tools. Because these companies understand the power of the tools years ahead of others and they have the knowledge to use them.
These tools do not grow on trees, so there are only a few software specialists that provide the industry with this tools, like this one:
Now let's make anther assumption: one companies AI is predicting an economic downswing with a probability of 50%. And the managers are a bit risk-averse. The start reducinge their workforce immidiately by 20%.
All other companies recognize this step and their AI tools (which previously also were assuming a downswing with a low probability) use this as an indicator for the expected economic development. And they adjust their prediction, strongly recommending to fire also their employees. Without need and with a really good profit the last year all companies start laying off employees.
Alphabet for example, with a profit of 22 billion in the last quater of 2022 and A FUCKIN PROFIT (I MEAN REAL PROFIT) of 59 FUCKIN BILLION US DOLLARS sends home 10 % of their workforce.
Now smaller businesses start thinking - Do they know more then we do? And react more careful. To the point that not only the IT industry is going down, but all business areas following. Just because some AI tool does the same as the other AI tools we are in a global depression.