Is AI the END of the Middle Class?

Summary

The video discusses a study by the International Monetary Fund on the economic impact of generative AI, highlighting potential wealth inequality and job displacement. It features insights from experts like Kai-Fu Lee and Jeffrey Hinton, emphasizing the need for proactive fiscal policies to mitigate societal impacts. The script also addresses public reactions to AI's job-displacing capabilities and the importance of preparing for the inevitable economic shifts.

Takeaways

• 📊 A recent IMF study emphasizes the potential for wealth inequality due to AI advancements and the need for fiscal policies to address it.
• 🌐 The study discusses the possibility of increased market power and economic rents for dominant firms due to AI, leading to a more concentrated market.
• 💡 Kai-Fu Lee's insights from 7-10 years ago are highlighted, predicting service and arts professions growing as machines automate other jobs, and the potential for global inequality.
• 🏛 The script suggests that a utopian world government is unlikely, and instead, a bipolar world with superpowers and aligned nations might emerge due to AI.
• 💼 The potential for increased productivity due to AI is noted, but concerns are raised about wealth concentration at the top, exacerbating inequality.
• 🛑 The script mentions the challenges faced by low-wage workers who may fall into poverty if their jobs are automated, highlighting the need for social assistance.
• 🔄 The importance of agile government approaches to prepare for disruptive scenarios caused by AI is underscored, including policy considerations for displaced workers.
• 📚 The need for fundamental changes in education and training systems to adapt to the broad impact of generative AI is discussed.
• 💡 Jeffrey Hinton's perspective on AI's potential to increase productivity and the societal implications of wealth distribution is included.
• 🌍 The paper suggests that not all countries will be affected equally by AI, and they must assess their social protection systems for resilience.
• 🚫 The IMF does not recommend a specific tax on generative AI due to the risk of hampering productivity growth and the ease of tax avoidance through relocation.

Q & A

What is the main topic of the video script?

The main topic of the video script is the impact of generative AI on the economy, particularly the potential for wealth inequality and the role of fiscal policies in mitigating those effects.

What does the International Monetary Fund (IMF) paper discuss regarding AI and wealth inequality?

The IMF paper discusses the potential for wealth inequality to increase due to AI, as it could lead to a concentration of capital in the hands of a few dominant firms, creating a 'winner-takes-all' market scenario.

What is Kai-Fu Lee's prediction regarding the future of AI and human professions?

Kai-Fu Lee predicts that in 50 years, human professions will shift significantly towards service and the arts, with machines automating many tasks, potentially leading to increased inequality and the creation of 'have not' zones.

What is the potential impact of generative AI on labor markets and poverty?

Generative AI could lead to increased poverty, especially for workers at the bottom of the wage distribution, as they may face greater difficulty finding new jobs with similar pay after displacement by automation.

What are some of the challenges faced by governments in preparing for the disruptive scenarios brought about by AI?

Governments need to take an agile approach to prepare for highly disruptive scenarios, ensuring that the benefits of AI are distributed positively across society and considering social assistance for those displaced by AI technologies.

What does Jeffrey Hinton suggest about the distribution of productivity gains from AI?

Jeffrey Hinton suggests that the productivity gains from AI are likely to be concentrated among the wealthy, potentially exacerbating wealth inequality, rather than benefiting the workers or those displaced by AI.

What is the potential societal impact of AI on jobs and the workforce?

AI has the potential to displace a significant number of jobs, particularly routine and manual tasks, leading to broader social implications and the need for fundamental changes in education, training, and policy frameworks.

What does the IMF suggest regarding the taxation of generative AI?

The IMF suggests that taxing generative AI could be difficult to design and implement, risk hampering productivity growth, and may not be recommended due to the potential for avoidance through relocation or production abroad.

What are some potential solutions to mitigate the negative impacts of AI on the workforce?

Potential solutions include reconsidering the design of corporate tax systems, providing income tax credits and job credits, and implementing social protection systems that can adapt to the changing labor market.

What is the role of education and training systems in preparing for the AI-driven future?

Education and training systems need to evolve to prepare individuals for a broader spectrum of tasks that AI may not replace, ensuring that the workforce can adapt to the changing demands of the job market.

How can individuals protect themselves from the potential negative effects of AI on their careers?

Individuals can protect themselves by staying informed about AI developments, seeking continuous learning and upskilling opportunities, and considering career paths that are less susceptible to automation.

Outlines

00:00

📈 Economic Impact of Generative AI

The video discusses a study by the International Monetary Fund on the economic implications of generative AI, particularly the potential for increased wealth inequality. It emphasizes the importance of understanding how AI will affect the economy and society, highlighting the need for fiscal policies to address these issues. The video also references historical predictions by Kai Fu Lee about AI-induced inequalities and the potential for a global shift towards service and arts industries, automated by machines. The speaker suggests that the development of AI could lead to a concentration of wealth and market power in the hands of a few dominant firms, creating a 'winner-takes-all' scenario.

05:00

🏆 The Winner-Takes-All Market of AI

This paragraph delves into the high costs and limited accessibility of AI technology, suggesting that only large corporations can afford to develop and implement AI, leading to a concentrated market. It discusses the potential for AI to exacerbate wealth inequality by increasing productivity but distributing the benefits unevenly, favoring the wealthy. The speaker mentions the need for governments to prepare for disruptive scenarios and to ensure that the benefits of AI are distributed equitably. The paragraph also touches on the risk of increasing poverty due to job displacement by AI and the importance of social assistance for affected workers.

10:02

🛠️ Rethinking Social Contracts in the AI Era

The speaker contemplates the future impact of AI on the social contract, suggesting that the increasing productivity gains from AI will primarily benefit the top echelons of companies, potentially breaking the traditional capitalist model. The paragraph discusses the need for fundamental changes in education, training systems, and policy frameworks to address the broader social implications of AI. It also raises concerns about the potential displacement of workers in both routine and high-skill non-routine tasks and the importance of countries assessing their social protection systems to cope with the effects of AI advancements.

15:03

💼 The Future of Jobs and Wealth Inequality

This section of the script addresses the potential for AI to displace a significant number of jobs across various sectors, from telemarketing to driving, and the subsequent exacerbation of wealth inequality. It suggests that while a few individuals may become ultra-rich from AI advancements, many others may face joblessness. The speaker also discusses the possibility of taxing AI to mitigate the speed of adoption and labor displacement, but acknowledges the difficulty in designing and implementing such a tax without hindering productivity growth. The paragraph concludes with the IMF's stance against a specific tax on generative AI due to the risk of avoidance through relocation.

20:04

👷‍♂️ Preparing for the AI-Driven Job Displacement

The final paragraph focuses on the public's reaction to predictions of job displacement by AI, highlighting the emotional responses and denial that often accompany such discussions. The speaker encourages viewers to think critically about how to manage their future in the face of AI advancements and to seek solutions rather than succumbing to fear. The paragraph references comments from viewers and experts, emphasizing the need for governments to act and for individuals to prepare for the economic and social changes that AI will bring. It concludes with a call to action for viewers to engage in discussions about the implications of AI on jobs and the economy.

Keywords

💡International Monetary Fund (IMF)

The International Monetary Fund is an international organization that aims to foster global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world. In the context of the video, the IMF has conducted a study on the economic implications of generative AI, highlighting the potential for wealth inequality and the need for fiscal policies to address these issues.

💡Generative AI

Generative AI refers to artificial intelligence systems that can create new content, such as text, images, or music, that is not simply a replication of existing data. The video discusses how generative AI could lead to wealth inequality, with the potential to automate a wide range of jobs and concentrate economic power in the hands of a few dominant firms.

💡Wealth Inequality

Wealth inequality refers to the uneven distribution of assets among different social classes or individuals within a society. The video script emphasizes the potential for AI to exacerbate this issue by creating a divide between those who own and benefit from AI technologies and those who are displaced by them, leading to a concentration of wealth among a small group.

💡Fiscal Policies

Fiscal policies are government strategies related to taxation, spending, and borrowing, which are used to influence the economy. The IMF paper mentioned in the video suggests that fiscal policies could play a role in mitigating the potential wealth inequality resulting from AI by ensuring that the benefits of AI are more broadly distributed across society.

💡AI Monopoly

The term 'AI monopoly' in the script refers to the dominance of a few large tech companies in the AI market, which could lead to a 'winner-takes-all' scenario. This is exemplified by companies like Google, Amazon, and Meta, which already have significant control over their respective markets and are poised to benefit disproportionately from AI advancements.

💡Robotization

Robotization is the process of replacing human labor with robots or automated systems. The video discusses the potential negative impacts of robotization on labor markets, particularly for low-wage workers who may find it difficult to secure new employment with similar pay, thereby increasing poverty levels.

💡Economic Rents

Economic rents refer to the income generated by the ownership of a factor of production, which is earned in excess of the income necessary to keep that factor in its current use. In the video, it is mentioned that generative AI could lead to an increase in market power and economic rents for dominant firms, further contributing to wealth inequality.

💡Capital Concentration

Capital concentration describes the accumulation of capital in the hands of a few entities. The script warns that as AI technologies become more prevalent, capital may become increasingly concentrated, leading to a small number of companies controlling the market and reaping the majority of the economic benefits.

💡Social Protection Systems

Social protection systems are government initiatives designed to protect individuals from the risks and vulnerabilities associated with poverty, unemployment, and other social issues. The video suggests that as AI continues to impact the job market, the design of these systems will be crucial in mitigating adverse labor market impacts and reducing poverty.

💡AI Safety

AI safety refers to the field of study concerned with ensuring that AI systems are designed and operated in a manner that is secure, reliable, and beneficial to society. While not the primary focus of the video, the mention of Jeffrey Hinton, who left Google to speak about AI safety, underscores the broader ethical and societal implications of AI development.

💡Technological Unemployment

Technological unemployment occurs when technological advancements displace human workers, leading to job loss. The video script discusses the potential for AI to cause technological unemployment, particularly in routine and manual tasks, and the need for policy frameworks to address the broader social implications of this displacement.

Highlights

A recent study by the International Monetary Fund discusses the potential wealth inequality that could arise from AI.

The paper 'Broadening the gains from generative AI' emphasizes the role of fiscal policies in mitigating AI-induced wealth disparity.

Kai-Fu Lee predicts a future with service and arts jobs due to automation, and potential social unrest from AI-induced inequality.

Generative AI could lead to increased market power and economic rents for dominant firms, creating a winner-takes-all scenario.

Large companies like Meta, Google, and Amazon are positioned to dominate AI markets due to their existing market control.

Governments are advised to take an agile approach to prepare for disruptive AI scenarios.

The economic gains from generative AI must be distributed positively to avoid a dystopian scenario of wealth concentration.

Robotization may increase poverty, especially for low-wage workers who face difficulty finding similar pay after job displacement.

Jeffrey Hinton discusses the potential for AI to exacerbate inequality by increasing productivity without benefiting the workforce.

The need for fundamental changes in education and training systems to adapt to the broad impact of generative AI.

Not all countries will be affected equally by AI, necessitating individual assessments of social protection systems.

Taxing generative AI could hamper productivity growth and is difficult to implement effectively.

Reconsidering corporate tax systems to incentivize or mitigate investments in automation is suggested.

Taxing carbon emissions from AI servers is proposed as a way to reflect environmental costs.

The IMF does not recommend a specific tax on generative AI due to the potential for avoidance and harm to productivity.

AI is expected to displace both white-collar and blue-collar jobs, with software-only displacement happening faster.

The public and governments need to prepare for the implications of AI on jobs and the economy.

Transcripts

so there was a recent study done by the

international monetary fund and it's

actually really important for the Post

AGI economics which is why I'm making

this video I truly truly believe that we

do need to be focusing on the other

aspects of generative Ai and how AI is

actually going to affect the economy

which is why I'm covering this today so

essentially this paper broadening the

gains from generative AI the role of

fiscal policies this is a paper that

actually talks about the wealth

inequality that could potentially happen

from Ai and what's currently being done

and what's currently being proposed then

they actually you know talk about some

things that I think will be translated

well into society now there are also a

few different video clips slin clips

from notable speakers and popular AI I

guess you could call them spokes people

but just people that have a very

important opinion and that shape the

discussion and the discourse around Ai

and I think they opinion is very

relevant to the discussion which is why

I'm going to include it into today's

video so one of the things that I want

to show you all and I really want to

show you guys this first clip because

this clip is actually from around 7 to

10 years ago not exactly sure on the

exact date but it does talk about the

inequalities on AI and I'm going to

reference this clip again because the

speaker Kai Fu Lee that you can see

right here is actually very very

intelligent and actually has predicted

some of the things that have already

come true and many of the things that he

predicted before are now starting to

ring even louder despite many people

trying to stick their heads in the sand

so take a listen to what he said

literally s years ago before there was

you know a lot of the AI hype that we

see in today's area if we're to project

50 years in the future I think the

entire human profession would shift a

lot a lot more towards service and the

Arts and machines would pretty much

automate everything for us right when we

talk about inequalities both with halves

and Have Nots but also with respect to

countries and and and other countries I

think we need to figure out a way that

these changes are synchronized worldwide

otherwise we will create uh pockets of

dangerous zones in the world where

poverty will persist and perhaps be

enhanced and there might be extremist

activities of different types because of

the have not situation that the

development of Technology have put them

into I think a utopian belief might be

there would be more of a world

government but I don't think any of us

really believe that's likely to happen a

more likely scenario is that us and

China will be the two superpowers and

the um so-called uh smaller weaker

poorer countries will essentially be

aligned with the one of the two

superpowers and so essentially what he's

talking about here here is the wealth

inequality with AI this is something

that I've previously discussed on my

private community on the school and it

was something that I previously spoke

about when I first launched a community

uh when I first actually had it on

patreon and I spoke about how wealth

inequality is going to actually be a

real thing now at the time I didn't

actually know of this interview clip

where Kaiu Lee was actually discussing

exactly what I was talking about and of

course his you know talks are from years

ago which means that you know his

discussion and his viewpoint are you

know to be taken very very seriously

because he was someone that predicted

this far before the generative AI hype

train is here now essentially there was

this article that was in the financial

times where they actually spoke about

how generative Ai and they did a small

summary but I'm going to read some of

the key points from the article and then

I'm going to dive into the actual paper

that actually you know goes over some of

the key points that you need to know so

basically of course here you can see

that they say generative AI could also

result in a further rise in the market

power and economic rents enjoyed by

dominant firms in an increasingly

concentrated and Winner Takes all

markets as a result of capital getting

more concentrated in the hands of fewer

companies if you aren't familiar with as

to why this is essentially going to

happen think of it like a snowball if we

take a look at some of the giant

companies right now meta Google Amazon

Microsoft essentially they have a you

know Monopoly already on many of the

markets for example Apple I wouldn't say

they have a monopoly on the phone market

but certainly in the Western Hemisphere

you know they have the iPhone and the

iPhone you know the entire ecosystem is

pretty dominant I would say that if for

example we look at Google they

definitely have a monopoly on the search

market and I think you know of course

meta they have Instagram they have

WhatsApp those you know platforms have

over billions you know of users which is

pretty incredible and the thing is as

generative AI continues to grow we're

going to see those companies get

increasingly more powerful as they get

increasingly more control and the point

is is that this might be a win or take

or Market because of course the

companies make more money and one of the

biggest problems about this kind of

technology is is that only a few

companies can actually enter this Market

because if you think about how much the

next training runs are going to cost

they are going to cost somewhere from 10

billion to100 billion it's not like your

average run-of-the-mill other technology

companies that can raise capital and go

ahead and compete this is not just

software this is something that you know

these really big companies are working

on and only they can compete at that

level you know in order to you know hire

the researchers hire the you know people

that are going to be building out the

data centers and of course affording all

of these gpus so it truly is going to be

a winner take or Market or at least

concentrated in the hands of a very few

now they talk about how governments need

to take an agile approach that prepares

them for highly disruptive scenarios and

this is where I'm actually going to get

into some of the key things discussed in

this which basically just says look

there are going to be a lot of economic

gains and benefits from generative Ai

and what you need to do is you need to

ensure that the way how Society is set

up is that it's actually able to capture

the benefits from AI in a way that it is

distributed to society in a positive way

because if we distribute the benefits

now and Society is L as it is we're

going to be in a pretty you know

dystopian scenario where you know a

handful of companies raking all the

profit and the rest of society is just

in a dystopian hellhole where they

aren't able to benefit from the economic

gains that generative Ai and all future

AI Technologies you know whichever you

know part of AI is that they you know

have done so for example right here they

actually talk about the impact on

poverty they said in addition to its

effects on labor markets robotization

may also contribute to increas inreasing

poverty especially if the negative

impact of robotization is more

pronounced for workers at the bottom of

the wage distribution these workers are

at a higher risk of falling into poverty

because it's harder for them to find new

jobs with similar pay so essentially

here they're basically just stating that

look if you're someone that doesn't make

a lot of money and robots come and take

your job like actual humanoid robots

then you're going to be you know falling

into poverty even more because it's

quite harder for you to find a similar

job with similar pay if robots are there

now there is going to be something that

I will reference from time to time

because there was a recent article that

actually discusses which kind of jobs

are going to be going away and I will be

doing a video on that but the thing is

is that of course this is very very true

and this is something that we need to be

paying attention to and they actually

talk about how there needs to be some

social assistance in the sense that look

if we are starting to you know slowly

ramp up our production in terms of the

AI Technologies these products then

we're going to have to think about the

people who get displaced by these jobs

and ensure that they aren't just

completely left to fend for themselves

without any way of you know providing

for themselves because in some scenarios

you know people tend to fall through the

cracks and of course this isn't a good

scenario especially if we're going to

have large waves and certain periods of

time where you know this is a

transformative period because we haven't

really had a disruptive technology like

this before now Jeffrey Hinton from from

Google well he doesn't work at Google

anymore in fact he actually left so he

could speak about the issues of AI

namely AI safety but he actually does

talk you know very quickly here about

how the inequality with AI is probably

going to proliferate in the Litany of

things that you're worried about you

obviously we have battle robots as one

you're also quite worried about

inequality tell me more about this so

it's fairly clear it's not sudden but

it's fairly clear that these big

language models will cause a big

increase in in productivity so there's

someone I know who answers letters of

complaint for a Health Service yeah and

he used to write these letters himself

and now he just gets chat GPT to write

the letters and it takes one fif of the

amount of time to answer a complaint so

he can do five times as much work and so

only five times fewer of him um or maybe

they'll just answer a lot more letters

but or they'll answer more letters right

or maybe they'll have more people

because they'll be so efficient right

more productivity leads to more getting

more done I mean this is this is an

unanswered question but what we expect

in the kind of society we live in is

that if you get a big increase in

productivity like that the wealth isn't

going to go to um the people are doing

the work or the people who get

unemployed it's going to go to making

the rich richer and the poor poorer and

that's very bad for society

definitionally or you think there's some

feature of AI that will lead to that no

it's not to do with AI it's just what

happens when you get an increase in

productivity particularly in a society

that doesn't have strong unions but now

so we can see right here that Jeffrey

Hinton is basically echoing these same

things Kai fui is and essentially what

he's talking about here is you know

you've heard that once this increased

productivity gains are going to be there

a lot of the gains are just going to go

straight to the top of the companies and

this is the thing that this kind of you

know I guess you could say system kind

of breaks capitalism in a sense because

capitalism sort of works for everyone

because yes you can work harder and you

can earn more money but if we you know

let's say we just decide to push forward

25 to 50 years into the future future

where we have true true automation of

nearly everything we're going to be in a

society where the only people who own

the AIS are going to be the people who

you know have the means to earn an

income which means that the fundamental

social contract is going to have to

change and during the transition period

from the one that we are in now to the

one that's going to be there in the

future it means that we'll need to think

about how we actually you know change

society now in my school where I

actually talk about all this stuff there

are numerous articles and research

papers that have you you know talked

about and you know I've done little blog

posts and stuff like that where I've you

know spoke about some of the solutions

and how to like position yourself if

those scenarios do come about so that is

something that you can check about I'll

leave a link in the description to that

but the point is is that this is a true

true scenario that we will have to brace

ourselves for so you can see right here

this is where the research paper they

actually talk about you know things from

the past so they say overall these

findings suggest that the design of

social Protection Systems played a role

in am I ating adverse labor market and

poverty impacts in the past although

robotization can lead to displacement of

workers in routine and manual tasks the

impact of generative AI could

potentially be more widespread replacing

a broader spectrum of both routine and

high skill non-routine tasks this calls

for more fundamental changes in

education and in training systems and

policy Frameworks to mitigate potential

broader social implications the extent

to which existing systems will need to

be upgraded in a world of Rapid

technological change and potentially

more significant labor market

displacements is discussed in the next

section basically what they're stating

here is that look okay we need to be

thinking about Education and Training

Systems and policy Frameworks to

actually mitigate the potential broader

societal implications because as Kaiu

Lee said there is going to be people who

are you know frustrated that they've

been left out in this next wave of

technology I mean if you think about it

if you're someone who is on the tail end

of what's going on here you're just

going to be someone who loses your job

while seeing a lot of people at the very

top get rich due to these AI

Technologies and the worst thing about

it is that if you're someone in certain

careers that these AIS are profiting

heavily from then you could even be

someone who's had your work I guess you

could say illegally stolen trained on

and then used to replace you that's just

going to Fel your frustration even more

so you can also see here he says and not

all countries are likely to be affected

equally while the answers are not yet

certain countries will need to assess

whether their social protection

education and tax systems are fit for

purpose and flexible enough to cope with

a wide range of potential scenarios this

is something that I do also believe that

many of the countries are not even

focusing on at the moment plus yes many

accelerationists are always saying we

need to accelerate development we need

to accelerate faster we need to also

ensure that we are putting pressure on

the people in control to ensure that

they actually accelerate the policies

faster too because as long as the

technology is increasing as long long as

these systems get better and more

capable as we know that they are as even

you know recently Dario amod the CEO of

anthropic actually stated that we see no

signs of the capabilities slowing down

and the scaling laws aren't actually you

know tapering off which essentially

means that these models are going to be

getting bigger and better and more

capable with scale long story short

they're going to be able to do more jobs

in the future which means that we need

to make sure that if we're increasing

the capabilities we're also increasing

how much the current economic system or

the current economic policies actually

favor those who are displaced by these

Technologies maybe there might be a

generative AI law where if you're you

know you're displaced by AI you get like

six-month Severance from the government

and you're able to get a three

upskilling program that actually allows

you to transition into a new career

hopefully this would be something that

would help those who have been displaced

but right now I'm not sure if there are

even any very effective discussions

going on but of course with the IMF

making this report this is going to be

something that does help the situation

why could AI exacerbate wealth

inequality and and what can we do about

that yes I we we can just already see

all the internet companies um I think

without AI they they probably be only

worth half of what they're worth because

AI help them monetize and that will uh

extend into all the other Industries so

the tycoons there will so will be there

will be more numerous and they will be

even richer and richer at the same time

because AI is um developing human

intelligence equivalents and that means

AI can do many of the tasks and jobs

that we do today and in particular AI

will first do jobs that are routine so

uh White Collar jobs like telemarketing

and customer service and um uh people

who copy and paste and file expense

reports uh desk jobs those will be gone

first because AI can do them just just

in software you don't even need Robotics

and then um a blue color work visual

inspection U assembly line work um uh

many waiters and waitresses and um uh

many of the uh the jobs in factories and

warehouses the Pickers in at Amazon the

cashiers grocery store um and of course

in about 15 20 years all the drivers all

the people who drive for a living so

when you add all that up it's a

substantial number of jobs and when when

it's simultaneously making a small

number of people Ultra rich and making

many people jobless that is the wealth

in quality um problem that AI will

exacerbate and it sounds like the only

jobs now there was also this right here

which is actually rather fascinating

because this actually discusses the

taxing of AI now this is something that

I've seen you know spoken about quite a

lot but this is where we I guess you

could say first get our definitive

answer and what these governments might

do it says here a special tax on

generative AI to reduce its speed of

adoption and prevent excessive labor

displacement will be hard to design and

Implement and would run the risk of

hampering productivity growth including

areas where AI investment augments labor

basically stating that if you're trying

to tax generative AI this is probably

going to slow down productivity and of

course areas where people are looking to

invest in AI which actually makes people

that are currently working more

effective so they're stating that now it

is recommended that countries reconsider

the design of the current corporate tax

systems in how they incentivize

investments in automation for instance

tax incentives in the form of capital

allowances may need to be reconsidered

in countries where they are more

generously applied to labor displacing

software or intangibles than to other

assets at the same time countries where

corporate tax systems impose a much

higher tax burdens on AI might hold up

deployment and reduce productivity

growth and income tax credits and job

credits could also be considered to

mitigate excessive labor displacement

from automation even if they cannot be

targeted to particular occupations

finally given the large amount of energy

consumed by AI servers taxing the

associated carbon emissions is a good

way to reflect the external

environmental costs and the price of

technology so basically they're stating

here that look taxing AI is going to be

pretty hard we need to be careful about

how we are doing this because we don't

want to stifle economic growth what we

we can do at the moment is we can you

know giving tax incentives and what we

can also do is we can tax the associated

carbon emissions from the huge data

centers that it you know cost to run now

what they basically say here the IMF is

that tax also can be easily avoided by

relocating or producing the AI abroad so

there's no real point in taxing

generative AI but a specific tax on

generative AI is therefore not

recommended which means that for those

of you who are thinking that we're

probably going to get a attacks on

generative AI or automation it doesn't

seem like we're going to be getting that

as a solution anytime soon so this paper

is really really fascinating because it

dives into some of the main things that

I talk about in my community on how we

can actually mitigate the effects of

this because I am one that believes that

you know whilst yes governments will

help us and yes they will shape the way

that a lot of people are going to you

know be affected by this I do think that

whilst you do have your agency and

whilst you do have some actions you can

do certain things to protect yourselves

from the coming wave of Automation and

at least Place yourself in the best

position to not only not be someone

who's automated but also Thrive I

actually recently did a comprehensive

guide that is designed to help you

navigate the rapidly evolving landscape

of AI Investments it is around 22 pages

long it covers every single sector that

you can invest in including private

Investments how to get into certain

Investments that aren't really available

to the public and many different things

that people really aren't considering

this is just in this section of the

School the AGI Investments so if you're

already in my school you can download it

there as well as a bunch of other

content now I quickly want to discuss

something that I saw recently and it's

something that I wanted to discuss

because the comments were something that

shocked me and at first they shocked me

and then I realized what human nature is

and this is just a quick you know tidbit

to kind of tell you not to play into

your own human nature human nature is

often one that tells you to run from

your fears and will often have you doing

things that whilst yes they're

comfortable often in the run they don't

actually help you at all this video

right here is called about 50% of jobs

will be displaced by AI within 3 years

now essentially in this video the only

thing that the guy is stating right here

is that you know he's made some past

predictions and it looks like they are

going to be coming true now if we take a

look at the date 3 years from now is

going to be 2027 if you've been paying

attention to my videos and the AI space

you'll know that many people have redict

including people that have left open a

eye some very very intelligent people

just trust me people open AI are

exceedingly smart smarter than you can

reasonably imagine and these people are

predicting timelines of 2027 we'll know

that by then we're going to have some

increasingly capable systems and for

that to be about 50% of jobs I don't

think that that is an overstatement the

point here is that many of the comments

on this video were basically stating

that this guy is just a this guy

doesn't know what he's talking about and

that we shouldn't even pay attention to

this video I don't think people are

truly stating what they truly believe

about the video I I think this is just a

knee-jerk emotional reaction to them

basically stating that they're going to

be out of a job that's why when I make

videos I'm not just basically saying

that looks everyone's going to lose

their job I'm trying to say that look AI

is going to affect the workforce but of

course there are always some Solutions

on how you can benefit from this

revolution the point here is that when

you do see these kinds of videos don't

just immediately get upset and think oh

my God I'm going to lose my job screw

this guy and this video just start to

think critically about what is the best

way that you can start to manage

yourself and your future in order to at

least benefit from this Revolution and

not be the person who's next on the

shopping block and job displacement I

think we all know this coming um you had

said around 2017 you thought in 10 to 15

years about 40 to 50% of all jobs would

be replaced by AI is that still an

accurate timeline in your opinion um

what the heck is everyone going to do

when they don't have a job in three

years if so it's actually uncannily

accurate people have criticized me for

being too

aggressive in the 2017 17 18 19 and I

was a little nervous at the time but

when J ji came came out I think

everybody's on the bandwagon and

believing that is the a correct Pace um

and I think the white job collar jobs

will go a lot faster blue collar job

maybe a little slower because more

people are shifting to the software only

displacement and and I think it's a very

very significant problem and I think

finally some governments are waking up

and realize they have to do something

about this and in my AI 2041 I outlin a

number of um creative maybe not

necessarily workable solutions that will

that was intended to get people thinking

so get a copy of the book so just to

actually show you some of the comments

because when editing this I realized I

didn't show you all of the comments but

you can see the first job replaced will

be all YouTubers who make videos about

AI replacing 50% of all jobs which is

basically a dig at this YouTube channel

of course you can see here when you come

back to this video in 3 years to leave a

comment saying that this prediction was

wrong nobody will be paying attention

but of course there are some other

insightful comments which actually

represent what I am saying and many

other people who are paying attention to

what is exactly going on are also

ushering everyone watching this needs to

consider the implications AI will have

on jobs and our economy very soon and

demand policy makers start acting we

cannot stop it nor we do want to and we

need to start preferring for what it

means AI will only keep advancing and

ignore the instinct to think it will

never do certain things for I can assure

you it will and far sooner than you

might expect do not believe those who

say we don't need to prepare as they're

probably the ones who will profit the

most from the rest of us struggling it's

not going to create anywhere near enough

new jobs quickly enough to re-employ as

all those it will displace how else will

we keep workers afloat while they figure

out what to do next and how else can we

protect the middle class from losing

everything they've built I've yet to

hear a better answer that doesn't Justus

dismiss what's coming and I think that's

what Kaiu Lee here has ushered a lot in

his comments because he keeps stating

that look look if we just carry on the

way we're going to go there is going to

be a serious social divide along those

who do have work and who do have money

and those who've just been displaced by

this automation if the governments don't

act quickly so let me know your thoughts

about this in the comment section below

because I think this is definitely an

interesting point that we need to

further discuss