Artificial intelligence (AI) could be the biggest challenge facing the jobs market and even humanity itself, according to Nobel Prize-winning economist Robert Shiller.

However, the Yale University professor told CNBC that he had a radical idea that could be implemented to mitigate AI's potential harm to society.

Speaking ahead of the World Economic Forum (WEF) in Davos, Switzerland, which he will be attending, Shiller said: "What we're seeing is something unprecedented, which is the arrival of artificial intelligence, which has a big impact."

Asked if he was worried about AI, Shiller said it was an unknown entity. "It creates tremendous uncertainty and impacts different people differently," he said. "And some people could be left out."

"It might turn out well. It may be that we'll have more school teachers and smaller classes, and people will be taking care of the elderly and we'll be living longer and there'll be people to look after the elderly. We'll see," he added. "But, for me, the big thing is the uncertainty we face because of AI, it could be extremely disruptive."

AI has attracted a lot of attention in recent years amid widespread concern that artificial intelligence, or robots, will replace human workers, causing a seismic shift in society and the economy.

In 2013, Oxford University published a study that estimated that 47 percent of U.S. jobs could be replaced by robots and automated technology within 20 years. And that view has been echoed by other high-profile tech leaders.