AsianFin -- Artificial intelligence may be hailed as transformative, but billionaire investor Ray Dalio believes its downsides could reshape society in troubling ways.

In an episode of The Diary of the CEO podcast released Thursday, the Bridgewater Associates founder called AI a “truly fantastic” tool—yet one that will deepen inequality. “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.”

According to Dalio, the top 1% to 10% of society will benefit disproportionately, leaving the rest behind. In his view, such concentration of gains will act as a dividing force, intensifying social and economic polarization.

Dalio, who built Bridgewater into the world’s largest hedge fund after founding it in 1975, has long warned about global debt risks in the US and China. Now, his focus is on how AI—especially humanoid robots and automation—could displace white-collar professionals, from accountants to doctors to lawyers.

As jobs are replaced, Dalio predicts growing conflict over what role humans should play in the economy. “Certainly there needs to be a redistribution policy,” he said. But he cautioned that simply giving money to people without meaningful work risks creating a “uselessness and money” problem.

That line of thinking touches on the debate over universal basic income (UBI)—a system where governments provide citizens with a guaranteed cash payment regardless of employment. While UBI has gained traction as a potential response to AI-driven disruption, it faces political hurdles and questions about long-term funding.