Ray Dalio Warns AI Will Create Unprecedented Inequality: 'Limited Number Of Winners'

Ray Dalio, founder of Bridgewater Associates, warned on Thursday that artificial intelligence will lead to unprecedented inequality, benefiting only the wealthiest 1% to 10% of Americans, while displacing millions of workers across various industries.

Speaking on “The Diary of the CEO” podcast, the billionaire hedge fund manager acknowledged AI as a “truly fantastic” tool but cautioned that it would cause a significant economic divide, according to a Business Insider report..

AI Job Displacement Threatens Professional Classes

“There’ll be a limited number of winners and a bunch of losers,” Dalio said. “It’s going to create much greater polarity, which we’re seeing through the system.”

The founder of the world's largest hedge fund, which was founded in 1975, cautioned that humanoid robots and AI could replace professionals like accountants, doctors, and lawyers. He predicted that this technological change would lead society to struggle over what roles people should take on.

Redistribution Policy Needed Beyond Basic Income

Dalio emphasized that traditional wealth redistribution won’t solve the crisis. “Certainly there needs to be a redistribution policy,” he said. “I don’t think that’s just a redistribution of money policy because uselessness and money may not be a great combination.”

The comments align with warnings from OpenAI CEO Sam Altman and AI pioneer Geoffrey Hinton, who have advocated for universal basic income models. However, billionaire Mark Cuban offers a contrasting view, urging next-generation workers to “learn all you can about AI” and seize implementation opportunities rather than await policy solutions.

Dalio expressed concern that American society may be “too fragmented” to implement effective solutions.

Market Implications For Investors

The warning comes as AI stocks continue driving market gains, with companies like NVIDIA Corporation NVDA and Microsoft Corporation MSFT benefiting from the technology boom. Dalio’s inequality concerns suggest potential regulatory and taxation risks for AI-focused investments as policymakers grapple with societal impacts.