This report analyzes the negative impacts of Generative AI (GenAI), focusing on model collapse, business disruption, and the devaluation of human talent. Model collapse, where AIs degrade from training on synthetic data, threatens system reliability. GenAI also disrupts businesses by devaluing existing products and fostering market concentration, particularly benefiting companies with pre-2022 data. Furthermore, it impacts human talent through skill devaluation, potential job displacement, and reduced creative motivation. The report calls for proactive strategies to mitigate these interconnected risks.

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