The future isn’t a mystery.
Generative AI is coming for almost everything.
Why? Machines will soon be able to see and hear in real time and interact with the world. That will unlock robotics.
That’s why Elon Musk is pivoting Tesla to a robotics company. He sees the writing on the wall and realizes that it will be easier to build robots to operate in a closed factory than cars operating on chaotic streets. The main challenge will be constructing the robots and sourcing the raw materials (steel, aluminum, copper and other materials) to build them.
It’s coming quickly and I believe markets and nearly all people are suffering from normalcy bias and normalcy paralysis. That’s a a cognitive bias where people underestimate the likelihood of a disaster or catastrophic event occurring.
The easiest way to envision it — I think — is that unemployment is going to 20%, even in the strongest markets. Jensen Huang is trying to warn us as earlier this week he said AI is coming for the heavy industry.
Here is is this week also warning that agentic AI will take jobs.
I don’t know why people are ignoring it or assume they know better than the guy who built a company that rose to be the biggest in the world.
How does it play out? At first company margins will explode higher as workers are phased out but in time demand will fall because people won’t have money to spend. The price of labor will collapse as a surplus of workers leads to +20% unemployment. The political ramifications are unknowable but undoubtedly chaotic.
This article was written by Adam Button at www.forexlive.com.
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