Citrini Research report triggers global stock selloff with AI recession scenario

A research report from Citrini Research imagining a 2028 AI-driven economic collapse went viral and hammered markets. The paper outlines a negative feedback loop: AI replaces white-collar jobs, displaced workers spend less, margin pressure pushes more AI adoption, until unemployment doubles and stocks crash by a third. The Dow dropped 800+ points and software stocks led losses. The report's co-author called for governments to consider taxing AI windfall gains. Indian IT stocks fell nearly 5% as Citrini named firms like TCS, Infosys, and Wipro as vulnerable to accelerating contract cancellations through 2027.

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