AI Governance Club

​🌍 AI Governance Club

​When a firm swaps workers for AI, it keeps the entire cost saving but absorbs only a sliver of the consumer demand those layoffs destroy. The rest falls on its competitors. Brett Hemenway Falk and Gerry Tsoukalas name this a demand externality, and they argue it traps rational, forward-looking firms in an automation arms race that sheds workers well past the point that serves anyone, owners included.

Join us for Session 36 to engage in this critical discussion:

The AI Layoff Trap (2026)
Falk, B. H. & Tsoukalas, G.

Session Format: presentation + Q&A/Discussion
Presenter: Shelley Curling

Shelley Curling, a long-time AI Governance Club member, serves as the Director of the Graduate Certificate in Accounting Foundations in the Smeal College of Business at The Pennsylvania State University. Professor Curling teaches undergraduate and graduate courses in accounting, managerial accounting, and auditing. Research interests include management disclosure incentives, accounting disclosures in capital markets, and managerial decision-making within organizations.

​For more information and to register for upcoming sessions: AI Governance Club