Potential Economic Impact of Artificial Intelligence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 01 2026
0mins
Should l Buy IBM?
Source: Fool
- Impact on IBM: AI startup Anthropic PBC's announcement of its Claude Code tool modernizing COBOL led to a 13% drop in IBM's stock on February 23, marking its worst single-day loss since 2000, highlighting the direct threat AI poses to traditional companies.
- Unemployment Rate Warning: Citrini Research's report warns that AI could push unemployment above 10% by 2028, leading to a decline in economic demand as companies cut jobs, which could further pressure profits and exacerbate layoffs, creating a negative feedback loop.
- Market Reaction: The report spooked markets, causing the S&P 500 index to fall by 1% on the day of its release, reflecting investor anxiety over the potential economic crisis stemming from AI, indicating high uncertainty about future economic conditions.
- Economists' Perspectives: Despite the widespread discussion sparked by Citrini's predictions, many economists have criticized its assumptions, suggesting that AI could actually increase overall employment by enhancing productivity and creating new demand, indicating a divergence of views on AI's impact.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 243.140
Low
210.00
Averages
315.80
High
375.00
Current: 243.140
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Performance and Efficiency Support: The collaboration also focuses on addressing the performance and efficiency demands of modern workloads, including AI and data-intensive applications, with plans to enable enterprise systems to recognize and execute Arm applications, enhancing overall computational efficiency.
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