Will artificial intelligence take our jobs?
Concerns about generative AI and robotic automation are growing, but trust me, I understand where it’s coming from.
That very question came to us from one of our loyal readers, Ken. So today I would like to answer that question!
Ken wrote:
If robots and AI take away everyone’s jobs, I feel like no one will be able to earn an income. If so, who will be the consumers of what robots and AI produce?
Where is the economy in this? How can the rich stay rich when no one buys what they make? Years from now, what do you think the situation will be?
Great question, Ken. And thank you for writing in!
There is always the fear that each new technology will take away more jobs than it creates.
But I think AI will increase the net number of new jobs.
this is the so-called “creative destruction” of capitalism. Some businesses will fail, while others will succeed using this new technology.
Buckminster Fuller once said of new technology: “New technologies will allow us to do more with less and less, and eventually do everything without having anything.”
There is a kind of synergy in this, and if we can increase human productivity, it will lead to widespread prosperity.
Consider how technologies such as the printing press, automobiles, and electricity have impacted human life.
Let’s say you have a factory that currently employs 100 people, and you want to lay off 50 of them because you can introduce robots into the factory and you don’t need that many workers.
Well, very unfortunate for those 50 people. they will be out of work. But it’s really “creative destruction” going on.
What will happen is that the income of the factory owners, and potentially the rest of the employees, will increase. In that case, they will start spending more. You may buy a new home or renovate the one you live in. Your overall spending may increase.
This is happening only because Productivity going up If you look at countries around the world, the most successful countries are those with high productivity.
That’s what it boils down to. A constant effort is needed to improve productivity, which has increased at a rate of about 2% over the past century. But AI has the potential to maximize productivity over the next decade. 3% to 3.5%!
I think it will be of great benefit to everyone.
I also think people are worried about the dystopian effect of robots.
But let’s say, for example, that every elderly person has a robot at home to help them care. It will greatly benefit from future automation and AI developments.
And AI could be the most powerful wealth multiplier we’ve ever seen.
Think back to 1993 when the Internet first appeared. The internet was barely used for anything, mostly email.
Yes, it disrupted professions such as travel agents, book sellers and record stores. But it has also spawned entirely new industries such as ridesharing, e-commerce, and social media.
In 1993, the world economy’s GDP was $25 trillion. It’s about $100 trillion right now…a quadruple increase.
forbes He called the Internet “our nation’s most powerful economic engine.”
I believe AI will get even bigger…
$150 Trillion AI Prediction
I predict an additional 50% increase in global GDP by the end of the decade thanks to AI. is about. worth $150 trillion.
Well, another question is: How can the rich stay rich when no one buys what they make?
This is where government comes into play.
Well, I’m not a socialist. I am not a communist. I am first and foremost a capitalist. But some regulation will be necessary.
People need to be able to get food, health care and unemployment benefits. We have everything we need for the creative destruction of capitalism.
I am very optimistic about what AI will bring to humanity. As with any previous technology development, there will be opportunities for significant revenue gains.
I think we’re already starting to see that trend this year. microchip strains.
Well, Ken, thanks again for asking!
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Until then, see you on Tuesday
Ian King Editor, strategic fortune