If AI Takes All Of Our Jobs... Who's Going To Buy Everything?
Summary
TLDRThe script discusses the impact of AI on the job market, predicting that 40% of global jobs could be affected, with 300 million full-time positions at risk. It highlights the efficiency gains from AI in companies but also raises concerns about reduced consumer buying power if unemployment surges. The video suggests a future where businesses may cater to a wealthy minority, while the rest of society faces economic challenges, paralleling trends in the gaming industry's freemium model. It concludes by pondering the implications of universal basic income in an automated world.
Takeaways
- š² Companies have historically sought to minimize labor costs through various means such as downsizing, outsourcing, streamlining, and automation, and AI is the latest in this trend.
- š¤ Despite not fully living up to initial hype, current AI technologies are already replacing jobs and are improving rapidly, which poses a threat to workers.
- š A new study predicts that AI could affect nearly half of all global jobs, potentially replacing 300 million full-time positions, including those in high-skilled fields like legal and engineering.
- šØāš¼ For corporate executives and business owners, the question arises of who will buy their products if AI automation leads to widespread job displacement and reduced consumer purchasing power.
- š Labor reduction through AI has already increased efficiency and reduced man-hours, with companies that use AI in their contact centers hiring significantly fewer agents than those that don't.
- š” AI's impact on employment is not entirely negative; it can also lead to more work for fewer staff or allow for the complete replacement of teams in certain roles.
- š The video script highlights the example of Adobe's AI features, which have automated tasks previously done by humans, leading to job displacement in some companies.
- š Survey data indicates that companies using AI in their contact centers laid off an average of 26.1% of their employees within a year, a significant impact on employment.
- š Historically, strategies like Henry Ford's $5 workday aimed to create a market for his products by ensuring his workers could afford to buy them, a concept that contrasts with modern automation's potential to reduce consumer bases.
- š® The video game industry exemplifies a shift towards catering to a wealthy minority ('whales') for profit, a strategy that could become more prevalent as AI and automation reduce the value of labor.
- š° The increasing value of assets and the availability of credit have created more rich individuals, but this has also led to a situation where few modern fortunes are made through work alone, potentially exacerbated by AI and automation.
- š¤ Policy fixes like universal basic income are proposed to address potential widespread job displacement, but they come with their own set of challenges and societal implications.
Q & A
What is the primary concern regarding the impact of AI on jobs as discussed in the script?
-The script primarily concerns the potential for AI to replace jobs across various fields, including legal and engineering, leading to a reduction in employment and buying power among the general population.
What historical example is used to illustrate the potential economic impact of AI on workers?
-The script uses the example of Henry Ford doubling the wages of his factory workers in 1914 to illustrate the potential for increased buying power among employees, which could be threatened by AI-induced job losses.
How has the adoption of AI in contact centers affected employment according to the script?
-The script states that companies using AI in their contact centers in 2023 hired 89% more agents than those who did not use AI, and 36.8% of companies laid off an average of 26.1% of their employees within just one year.
What is the 'freemium pricing' model mentioned in the script, and how does it relate to the video game industry?
-The 'freemium pricing' model is a business strategy where a product or service is provided for free, but users can pay for additional features or perks. This model is prevalent in the video game industry, where a small percentage of users spend large amounts of money on in-game purchases, while the majority play for free.
What does the script suggest about the future of wealth and the value of human labor in the context of AI and automation?
-The script suggests that the value of human labor may decrease due to AI and automation, while the value of assets and the importance of owning income-producing assets will increase, leading to a further divide between the wealthy and the rest of the population.
What is the concept of 'universal basic income' discussed in the script?
-Universal basic income is a government payment made to every citizen regardless of their financial status, intended to cover basic living expenses. It is proposed as a solution to support people whose jobs are replaced by automation or outsourcing.
How does the script describe the potential societal division resulting from widespread automation?
-The script describes a potential societal division into two classes: those who rely on a government lifeline (universal basic income) to get by, and those who are wealthy enough to own the businesses that benefit from automation and pay the taxes to fund the lifeline.
What was the outcome of the universal basic income experiment mentioned in the script?
-The experiment found that recipients of the universal basic income ended up earning less for themselves, likely due to reduced work hours, and experienced initial improvements in mental health and food security, but these benefits faded over time due to rising living expenses.
How does the script relate the video game industry's business model to the potential future of the economy under AI and automation?
-The script suggests that the video game industry's focus on catering to wealthy users with the 'freemium' model could be a preview of a broader economic trend where businesses primarily serve the wealthy, while the rest of the population is kept around for entertainment or basic sustenance.
What is the script's view on the necessity for businesses to adapt to a world where AI and automation are prevalent?
-The script implies that businesses need to consider the social and economic implications of AI and automation, and find ways to ensure that they are not excluded from a potential future where the value of human labor decreases and the importance of owning assets increases.
Outlines
š¤ The Impact of AI on Job Market and Consumerism
This paragraph discusses the historical trend of companies seeking to reduce labor costs through various means, such as downsizing and automation. It highlights the recent advances in AI and its current and potential impact on jobs, including a study predicting nearly half of global jobs could be affected by AI. The paragraph also touches on the irony that while businesses aim to automate to save costs, they must also consider who will buy their products if unemployment rises. It concludes with a hypothetical scenario where businesses might cater exclusively to wealthy individuals, reflecting on the broader implications of AI on the economy and society.
š¼ The Shift Towards Wealthy Consumers in an Automated World
The second paragraph delves into the implications of widespread job displacement due to AI and automation. It suggests that as the value of human labor decreases, the value of assets and income-producing investments will increase. The paragraph uses the video game industry's freemium model as an analogy for how businesses might cater to a wealthy minority while providing free services to the majority, who may not have the means to spend. It also discusses the trend of luxury goods becoming more prevalent and the potential societal divide that could arise from automation, hinting at the need for policy solutions like universal basic income.
š Universal Basic Income: A Potential Solution to Automation's Challenges
The final paragraph presents findings from a universal basic income experiment, where participants received a monthly stipend with no strings attached. The study aimed to understand the effects of such an income on employment and well-being. It found that while recipients' mental health and food security initially improved, these benefits diminished over time due to rising living costs. The paragraph also critiques the slow societal response to previous economic shifts, such as outsourcing, and calls for proactive measures to ensure that the benefits of automation are inclusive and do not exacerbate inequality.
Mindmap
Keywords
š”AI advances
š”Downsizing
š”Outsourcing
š”Streamlining
š”Understaffing
š”Automating
š”Labor reduction systems
š”Freemium pricing
š”Universal basic income
š”Asset value
š”Wealth inequality
Highlights
Companies have been trying to cut down on workers for as long as workers have demanded pay and benefits.
Recent AI advances are already replacing jobs, and they are getting better every day.
A new study predicts almost half of all global jobs could be affected by artificial intelligence.
AI could replace 300 million full-time jobs, including positions in the legal and engineering fields.
Labor reduction systems have already cut out millions of man-hours in America, making remaining workers more efficient.
Adobe suite's inbuilt AI features can automatically remove backgrounds from images, reducing the need for human labor.
Companies that used AI in 2023 hired 89% more agents than those who did not, indicating a significant impact on hiring practices.
When AI was added to a contact center, 36.8% of companies laid off an average of 26.1% of their employees.
Reduced employment rates could lead to reduced revenue as people without jobs have less buying power.
The video game industry is now bigger than the movie, music, and television industries combined.
Free-to-play games are some of the most profitable due to their freemium pricing model.
The game industry caters to those with financial means, reflecting a broader trend in the economy.
Automation and AI could increase the value of assets as the value of human labor decreases.
Universal basic income has been proposed as a solution to keep the system going if people can't earn an income for themselves.
A recent comprehensive universal basic income experiment showed mixed results, with some improvements in mental health and food security.
The endgame for investors in automation is to build an automated utopian future, but for others, it's about not being excluded from it.
Lamborghini has sold more cars in the last 10 years than in all the rest of the company's history combined, indicating a growing market for luxury goods.
The value of an hour of human labor has stayed stagnant while the value of assets and availability of credit has skyrocketed.
Transcripts
companies have been trying to cut down on workersĀ for as long as those workers have demanded pay andĀ Ā
benefits whether it's downsizing OutsourcingĀ streamlining understaffing or automating ifĀ Ā
there is something a business can do to get ridĀ of workers and their salaries you better believeĀ Ā
they are going to do it but this time does feel aĀ little bit different recent AI advances have beenĀ Ā
mocked for not quite living up to the Bold claimsĀ of their Tech bro Founders but even in theirĀ Ā
current imperfect form llms General use robotsĀ and generative models are already replacing jobsĀ Ā
and they are getting better every day so that'sĀ bad for workers but if you're a senior corporateĀ Ā
executive or company owner maybe you should beĀ asking yourself if we automate everybody's jobĀ Ā
who is going to buy all of your [Ā __Ā ] a newĀ study out today predicting almost half of allĀ Ā
Global jobs could be affected by artificialĀ intelligence that 40% of all jobs around theĀ Ā
world will be impacted by Ai and found AI couldĀ replace 300 million full-time jobs includingĀ Ā
positions in the legal and Engineering Fields soĀ far there are nine robots here doing the work ofĀ Ā
more than 250 humans I have some good news andĀ some bad news for your theoretical company theĀ Ā
good news is that labor reduction systems ofĀ all varieties have already cut out millionsĀ Ā
of manh hours in America alone and made theĀ workers who are left more efficient at theirĀ Ā
jobs artificial intelligence is just another toolĀ that your company can use to get more work out aĀ Ā
fewer staff or replace teams entirely even here atĀ little o Works Media Group we used to have someoneĀ Ā
working part-time whose job it was to cut outĀ images on Photoshop to use in our goofy littleĀ Ā
animations now Adobe suite has inbuilt AI featuresĀ which can automatically remove backgrounds fromĀ Ā
any image with absolutely no human Tim or skillĀ involved now we love our editors so we gave himĀ Ā
more work editing our history videos but thereĀ are a lot of companies that now don't need to orĀ Ā
don't want to employ people for these simple jobsĀ according to a survey of 697 companies conductedĀ Ā
by Metro g a research and strategic advisoryĀ firm whatever that means companies who did notĀ Ā
use AI in calendar 2023 hired 89% more agents thanĀ those who did use AI in their contact centers forĀ Ā
existing employees it was even worse when AI wasĀ added to a contact center 36.8% of companies laidĀ Ā
off an average of 26.1% of their employees theseĀ alarming numbers were within just one year andĀ Ā
just within call centers which have already beenĀ hit by Outsourcing understaffing and automationĀ Ā
harder than most other Professional ServicesĀ for now so congratulations your business nowĀ Ā
has reduced headcount and significantly reducedĀ expenses But Here Comes the bad news in 1914 HenryĀ Ā
Ford doubled the salary of his Factory workers toĀ $5 per day The Story Goes he did this because heĀ Ā
wanted all of his employees to be able to affordĀ a Ford Model tea of Their Own boosting companyĀ Ā
Revenue now this is basically complete nonsense inĀ reality Ford just wanted to reduce that turnoverĀ Ā
and denied talent to up-and-coming car companiesĀ like Dodge to maintain his Monopoly over theĀ Ā
growing automobile industry but as with everyĀ good fairy tale there is negative truth in thereĀ Ā
if the employment rate suddenly drops as hardĀ as it did in the call centers from the study inĀ Ā
every company around the world then companies willĀ undeniably struggle with reduced Revenue as peopleĀ Ā
without jobs don't have the buying power theyĀ once did and even people with jobs will cut backĀ Ā
out of fear that they might be next but there is aĀ business plan that you as a hypothetical Titan ofĀ Ā
Industry might want to consider so that this isn'tĀ a problem and that's just making stuff exclusivelyĀ Ā
for other wealthy business owners while divertingĀ resources away from people who have nothing toĀ Ā
offer you that can't be done more efficiently byĀ a machine or a cheaper worker on the other sideĀ Ā
of the world now if you think that sounds a bitĀ crazy you should know that it's already kind ofĀ Ā
happening and the best place to see it is in videoĀ games yes those occasionally fun distractionsĀ Ā
from real life are the perfect example of theĀ shift happening in the real world right now soĀ Ā
let me cook according to Grand View research theĀ video game industry is now bigger than the movieĀ Ā
music and television Industries combined and it isĀ honed in its most profitable strategy free-to-playĀ Ā
games are ironically some of the most profitableĀ games on the market because they have perfectedĀ Ā
a business strategy called freemium pricing mostĀ people will play their games for free but a selectĀ Ā
few a affectionately known in the industryĀ as Wales will spend thousands sometimes evenĀ Ā
millions of dollars on a single game to unlockĀ in-game perks that would be almost impossibleĀ Ā
to obtain as a free User it's important that theseĀ games still have free users though because withoutĀ Ā
them the wheels would have nobody to show off toĀ or pone with their paid for advantages in a worldĀ Ā
where people are looking for budget-friendly formsĀ of entertainment the game industry has realizedĀ Ā
that the best way to turn a profit is toer toĀ those who have the financial means or at the veryĀ Ā
least the credit limit to spend ridiculous amountsĀ of money on a video game the people who have theĀ Ā
most financial means don't work for their moneyĀ they own income producing assets and if automationĀ Ā
does replace jobs on an even more widespread scaleĀ that will make your ability to work less valuableĀ Ā
and simultaneously income producing assets moreĀ valuable the rate of change in Ai and automationĀ Ā
makes the future impossible to predict but if theĀ people investing in these Technologies want toĀ Ā
see a financial return on that investment they areĀ going to learn what the game industry already hasĀ Ā
there is more money to be made by cateringĀ to other rich people and everybody else canĀ Ā
be kept around as entertainment now if you thinkĀ that sounds a bit depressing well welcome to thisĀ Ā
channel but also I should tell you that marketĀ trends already say this is happening AI isn'tĀ Ā
going to change your world it's just going toĀ continue a trend that's already been happeningĀ Ā
for years now so it's time to learn how moneyĀ Works to find out how companies are adapting toĀ Ā
a world where nobody can afford anything anymoreĀ this this week's lesson is sponsored by brilliantĀ Ā
brilliant is an educational platform designedĀ for comprehending what you learn it focuses onĀ Ā
a bottom-up learning strategy starting with theĀ fundamentals using interactive problemsolvingĀ Ā
activities learning and retaining knowledge thisĀ way is shown to be six times more effective thanĀ Ā
traditional video lectures the courses availableĀ on Brilliance are carefully crafted by worldclassĀ Ā
Educators Scholars and professionals from leadingĀ organizations and institutions such as MIT CaltechĀ Ā
Duke Microsoft Google and more brilliant'sĀ growing number of programming courses areĀ Ā
a great way to build foundations and learn realĀ world applications I recently took their course onĀ Ā
Creative coding which builds your computationalĀ problem solving skills by writing programsĀ Ā
that produce complex outputs with brilliantĀ learning is accessible from anywhere using aĀ Ā
computer smartphone or tablet brilliant providesĀ opportunities to acquire real knowledge in justĀ Ā
a few minutes each day with its captivating andĀ enjoyable lessons seamlessly integrating into yourĀ Ā
schedule whenever you have time to try everythingĀ brilliant has to offer for free for a full 30Ā Ā
visit brilliant.org many works or click theĀ link in the description you'll also get 20%Ā Ā
off an annual premium subscription in the 1992Ā movie Glen Gary Glenn Ross the iconic always beĀ Ā
closing scene has Alec Baldwin's characterĀ bragging to another salesman about drivingĀ Ā
an $80,000 BMW adjusted for $1 1992 according toĀ the Bureau of Labor Statistics that would be theĀ Ā
equivalent of just under $182,000 today that isĀ a very expensive automobile to be sure but theseĀ Ā
days if you drive around a major city you likelyĀ to see dozens of cars that cost that much or moreĀ Ā
and they probably wouldn't even stand out thatĀ much according to company sales data and historicĀ Ā
records Lamborghini has sold more cars in the lastĀ 10 years alone than it did in all the rest of theĀ Ā
company's history combined because there is simplyĀ a bigger market for $300,000 cars than ever beforeĀ Ā
the same general trend is true for Other ExtremeĀ luxury Brands like Bentley Ferrari Paddock PhilipeĀ Ā
luxury groceries at aroan gym memberships thatĀ cost more than rent hotels that make Hilton lookĀ Ā
like a Holiday Inn and to top it off privateĀ jets are all now way more popular than theyĀ Ā
ever have been one thing that often gets lostĀ in discussions of wealth inequality is that yesĀ Ā
billionaires are getting richer but there are alsoĀ far more rich people around than ever before andĀ Ā
it's because the value of an hour of human laborĀ has stayed more or less stagnant while the valueĀ Ā
of an asset and the availability of credit hasĀ skyrocketed people who held on to an even modestĀ Ā
portfolio over the last 4 years now have enormousĀ fortunes certain individuals got incredibly luckyĀ Ā
with good Investments and other people accessedĀ easy credit to get absolutely jacked to the titsĀ Ā
on Leverage and ride the longest asset Bull Run inĀ history very few people have made Modern fortunesĀ Ā
through work alone and you might have even noticedĀ how investing went from something that you shouldĀ Ā
do to secure your retirement to something you needĀ to do to have any quality of life at all if robotsĀ Ā
really do take over then it will just continueĀ to push the value of an hour of human work downĀ Ā
because it could be done by a machine instead andĀ it will rally the value of assets because businessĀ Ā
owners and investors will benefit from the FreeĀ Labor substitute this is where people point toĀ Ā
policy fixes like a universal basic income ifĀ you haven't heard about this idea by now that'sĀ Ā
impressive but it's basically a government paymentĀ made to everybody regardless of personal financialĀ Ā
conditions that should be enough to cover basicĀ living expenses it's been proposed as a solutionĀ Ā
to keep the whole system going if people can'tĀ earn an income for themselves because theirĀ Ā
labor has been outsourced or automated but thatĀ is still not a desirable outcome for anybody ifĀ Ā
comprehensive automation of human labor gets asĀ far as needing this then you will fall into oneĀ Ā
of two defined classes of people you will eitherĀ be getting by based on a government Lifeline orĀ Ā
you will be in the class of people that own theĀ businesses complaining about all the taxes theyĀ Ā
need to pay to fund that Lifeline I find it aĀ little bit easier to sympathize with one of thoseĀ Ā
groups but there are still no winners just lastĀ week the result of one of the most comprehensiveĀ Ā
Universal basic income experiments was publishedĀ the research gave 1,000 people living in TexasĀ Ā
and Illinois $1,000 a month with no conditionsĀ attached to qualify for this study their 2019Ā Ā
household income had to be less than 300% of theĀ federal poverty line or $ 37,40 for an individualĀ Ā
there was also an unlucky control group of 2,000Ā people who were only given $50 a month this isĀ Ā
because when your personal finances are beingĀ studied you are more likely to be careful aboutĀ Ā
your spending decisions and the researchers wantedĀ to control for these changes the study itself wasĀ Ā
funded by an organization called open researchĀ which is not technically affiliated with openĀ Ā
AI but they are both managed by Sam Alman whoĀ has been very vocal about how this technologyĀ Ā
could displace billions of jobs now if you everĀ find yourself running an AI startup that burnsĀ Ā
millions of dollars a day then one of the bestĀ ways to ensure that you keep that investor moneyĀ Ā
coming is to pretend to be really scared aboutĀ how your technology is going to replace workersĀ Ā
because well replacing workers is really excitingĀ to investors so realistically this study wasĀ Ā
probably little more than marketing stun conductedĀ by one of the best funded organizations in theĀ Ā
space but that doesn't mean that the resultsĀ aren't still interesting the key results relatedĀ Ā
to employment was that the group that receivedĀ the $1,000 payment ended up earning significantlyĀ Ā
less for themselves than the control group afterĀ the payment was accounted for they still earnedĀ Ā
more but $122,000 a loan is not enough to liveĀ anywhere in America without other forms of supportĀ Ā
all households ended up earning more but that wasĀ largely because this experiment started right atĀ Ā
the beginning of Co when employment particularlyĀ in low-wage professions was hurt by lockdowns theĀ Ā
reason the researchers gave as to why householdsĀ receiving the subsidy ended up earning less moneyĀ Ā
for themselves was because many people took itĀ as an opportunity to cut down on how much theyĀ Ā
were working and commit more time to leisureĀ in looking after their family this fits theĀ Ā
optimistic idea of an AI future where we can haveĀ machines do everything for us while we just relaxĀ Ā
and collect Universal basic income but the findingĀ still told a story of people who were financiallyĀ Ā
struggling mental health improved because peopleĀ were less stressed but those improvements FadedĀ Ā
by the end of the first year food security alsoĀ increased but again only in the first year asĀ Ā
even people with additional income fell victimĀ to Rising living expenses and that was whenĀ Ā
they could work to earn additional money whenĀ compared to being plunged into poverty it's anĀ Ā
okay compromise but this isn't going to happenĀ overnight Outsourcing turned entire cities inĀ Ā
America into ghost towns but it happened so slowlyĀ that big changes like this never got addressed theĀ Ā
endgame for people investing in automation isĀ to build that automated utopian future the endĀ Ā
game for everyone else is to make sure that theyĀ aren't excluded from it now if you want to getĀ Ā
these videos a day early and get articles thatĀ can never be made into YouTube videos then beĀ Ā
sure to subscribe to my email newsletter LinkedĀ In the video description now while everybody isĀ Ā
worried about not getting enough work there is oneĀ country that has decided the solution is gettingĀ Ā
people to work 6 days a week so go and watchĀ this video to keep on learning how money works
Weitere Ƥhnliche Videos ansehen
The Middle Class is about to get DESTROYED.
How You Will Lose Your Job To AI
The Rise of the Machines ā Why Automation is Different this Time
The End of Work? AGI Will Make UBI a Necessity (Universal Basic Income)
OpenAI's New Model Releases LEAKED | Sam Altman talks about AGI, UBI, GPT-5 and what Agents will be
The Future of Your Job in the Age of AI | Robots & Us | WIRED
5.0 / 5 (0 votes)