Nobel laureate Joseph Stiglitz told Fortune that current AI investment resembles a bubble that could burst and produce severe short‑term macroeconomic pain while also triggering long‑run structural displacement of workers. Stiglitz argued the economy lacks the retraining infrastructure and industrial strategy needed to manage a large reallocation of labor driven by AI. For universities, Stiglitz’s warning frames immediate responsibilities: scale up vocational retraining, build rapid‑response upskilling programs, and partner with industry for modular credentials. Public funding and policy advocacy will be crucial as institutions consider expanding non‑degree and microcredential pipelines to absorb displaced workers. Higher‑education leaders should treat the forecast as a mandate to expand labor‑market analytics on program returns and to strengthen ties with workforce development agencies.