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The future is not a mystery.
Generative AI is coming for almost everything.
Why? Machines will soon be able to see, hear and interact with the world in real time. This could open the door to robotics.
This is why Elon Musk decided to transform Tesla into a company specializing in robotics. He realized that building robots to operate in a closed factory would be easier than building cars to operate on chaotic streets. The main challenge will be to build the robots and provide the raw materials (steel, aluminium, copper and other materials) to build them.
This is coming fast, and I think markets and almost everyone are suffering from normality bias and normality paralysis. This is a cognitive bias where people underestimate the probability of a disaster or catastrophic event occurring.
The easiest way to envision this, I think, is that unemployment will rise to 20%, even in the strongest markets. Jensen Huang is trying to warn us as he did earlier this week He said Artificial Intelligence is coming to heavy industries.
Here’s also a warning this week that agentic AI will take over jobs.
I don’t know why people ignore that or assume they know better than the guy who built a company that became the largest in the world.
How to play it? At first, the company’s profit margins will explode as workers are phased out, but over time demand will decline because people won’t have money to spend. The price of labor will collapse because the surplus of workers leads to unemployment of more than 20%. The political ramifications are unknown but undoubtedly messy.
