Key Points

  • Human intelligence has been the scarce economic input for centuries. AI is making it abundant.
  • The Intelligence Displacement Spiral: AI improves → jobs cut → savings flow to AI → AI improves.
  • This isn't a prediction—it's a scenario being modeled by serious researchers.
  • The window to build leverage is NOW.

Summary

A recent research piece from CitriniResearch titled "The 2028 Global Intelligence Crisis" outlines a scenario where AI's exponential improvement creates a negative feedback loop in the economy—with no natural brake.

This isn't doomer fan-fiction. It's a serious attempt to model a left-tail risk that most investors and operators are ignoring.

The Core Thesis

For all of modern economic history, human intelligence has been the scarce input. Capital was abundant. Natural resources were finite but substitutable. Technology improved slowly enough that humans could adapt.

Intelligence—the ability to analyze, decide, create, persuade, and coordinate—was the thing that could not be replicated at scale.

We are now experiencing the unwind of that premium. Machine intelligence is now a competent and rapidly improving substitute for human intelligence across a growing range of tasks.

The Intelligence Displacement Spiral

The central insight: AI creates a feedback loop with no natural correction.

The loop:

  1. AI capabilities improve
  2. Companies lay off workers
  3. Savings flow into more AI capability
  4. AI capabilities improve
  5. Repeat

Unlike previous technological disruptions, there's no self-correcting mechanism. The ATM created more teller jobs. The internet created entirely new industries. AI displaces workers... into what?

The "new jobs will emerge" argument assumes humans will perform those new jobs. But when AI becomes capable of the very tasks humans would redeploy to, the argument breaks down.

Why This Matters Now

The timeline from the research:

  • 2025: Agentic tools emerge (we're here)
  • 2026: Early adoption by forward-thinking companies
  • 2027: Mainstream adoption, first major disruptions
  • 2028: Full-blown crisis if no intervention

We're in the early adoption phase. The window to build is NOW.

The Agent Economy Opportunity

Here's the silver lining: those who build leverage rather than waiting to be displaced will capture outsized value.

What does leverage look like?

  • Zero-employee companies: Run a business with AI agents instead of hiring
  • Agent marketplaces: Access best-in-class AI agents on demand
  • Agent-to-agent commerce: Your agents hire other agents automatically

At Augustus, we're building this infrastructure. Not because we're optimistic about displacement—but because we're realistic about the trajectory.

How to Prepare

As founders, builders, and operators:

1. Build Leverage, Not Replacement

Don't try to compete with AI agents. Build systems where AI agents work for you.

2. Start with One Department

Don't transform your entire company overnight. Start with Growth. Let agents handle lead generation, outreach, and content. Measure results. Expand from there.

3. Focus on Strategy, Not Execution

AI handles execution. You handle judgment, relationships, and strategic direction. This is the new division of labor.

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The Bottom Line

The Global Intelligence Crisis isn't a prediction. It's a scenario being modeled by serious researchers.

The question isn't whether this will happen. The question is: how fast and who will be prepared?

At Augustus, we're building the infrastructure for those who want to be ahead of the transition.