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Examining Legal and Economic Risks around AGI Hype & Doomerism post-GPT-5
- Abhivardhan
- Aug 15
- 11 min read
Updated: Aug 15
The release of GPT-5 by OpenAI has raised questions in the global AI economy, from multiple frontiers - technology viability, model explainability, economic logic, future of work and even on narratives of doom.
For more than 6 months and so, Indic Pacific Legal Research has been the sole legal consultancy and research firm, which had uncovered the economic and contract law perspective of AI Doomerism and AGI hype around large language models and their impact, endorsing the perspectives of healthy critics.
The reason we covered such perspectives was precisely because we believe that AI can be a driver of growth, if the frontiers of AI research and commercialisation are not hyped in bad faith.
In that context, this insight focuses on the technical, product management and economic failures of GPT-5, based on our previous research around OpenAI's relationship with Microsoft, and how AI hype was perpetuated by researchers and executives at this company. Again - the purpose of this insight is not to make ad hominem remarks on OpenAI, since we have examined economic law and technology policy considerations around other companies as well (e.g., Perplexity, Anthropic, etc.).
In addition, this insight examines the real-time economic law risks that would exist in a post-GPT-5 global economy, considering that Indic Pacific is the only research firm that has published extensive works on AI hype and digital competition law since 2021. We are also the only legal research firm in India which has developed a teaching module on AI hype in our AI and commercial law training programmes (do check them out at indicpacific.com/train).
But first, let's understand an AI Bubble and how it creates Economic Law Issues.
