AI Is Creating "Doom Loops" All Over the Economy
Unredacted legal documents from the New York Times' copyright lawsuit against Microsoft and OpenAI reveal internal company admissions that AI creates "doom loops"—systems where AI monetizes human-created content while simultaneously destroying the economic incentives and conditions needed to produce that content in the first place. The article catalogs these doom loops across journalism, music, film, education, and recruitment, showing how AI companies knowingly built business models that cannibalize their own supply chains and harm workers across creative industries. Microsoft's own internal documents acknowledged this paradox explicitly: the technology relies on fresh cultural content to function while the products themselves undermine creators' ability to earn livelihoods, ultimately threatening the open web and broader economy.