“How To Become AI Proof…”

The rise of Artificial Intelligence (AI) is happening at an incredibly fast pace, with advancements like ChatGPT and other models accelerating towards Artificial General Intelligence (AGI).

Sometime in the future the economic frameworks we currently know may no longer be applicable (or viable), marking a shift to what is called the “economic singularity”, coined by Calum Chace.

Let’s explore…

Traditional Gross Domestic Product (GDP) growth drivers, such as:

1) Population growth

2) Productivity, and

3) Debt growth

May no longer be sufficient to add to the economy due to:

1) Aging populations

2) Low reproduction rates, and thus

3) Related slowing productivity

AI and robotics (containing AI) are increasingly replacing human labour, with humanoid robots expected to enter residential homes in 10–15 years.

In addition, AI is on track to introduce infinite human knowledge (both trained on all of the existing human knowledge through data uploads and web scraping).

This could disrupt our current economic system which is built mostly on scarcity of knowledge and scarcity soft assets.

As knowledge and labour become more abundant, their value begins to collapse.

Green energy, particularly solar and nuclear, will eventually drive down electricity costs, further enhancing the productivity of AI (AI costs are astronomical at the present).

This means the economy as we know it could be very different in the future:

A future economy may be powered by AI, robotics and very cheap energy, creating unpredictable and bizarre economic outcomes that we cannot foresee right now.

It’s probably marked by massive productivity boosts and a severely reduced need for human involvement in almost ANYTHING.

AI agents (either software or hardware) will begin to perform complex tasks autonomously, and blockchain and cryptocurrency will likely play a key role in this transformation for payments between AI systems, as AI cannot use traditional banking because they are not legal entities.

In addition, cryptocurrency will allow decentralised, verifiable, and fast-moving transactions in a world where traditional banking and fiat currency systems won’t suffice for AI-based transactions.

Innovation will accelerate, with AI building new products and services at unprecedented speeds with minimal human involvement, and eventually AI will begin to solve its own problems.

Traditional capital systems will be disrupted by the speed and adaptability of AI.

Why would we need venture capital when Ai agents can build companies in the blink of an eye?

That is right, venture capital and IPOs will struggle to keep pace with the speed of AI-driven innovation, forcing capital markets to adapt to much, much faster business cycles.

The value of traditional companies and business models will diminish as AI and robotics create and replicate products and services rapidly, rendering many industries obsolete of humans.

Financial markets will be transformed by AI’s ability to outperform humans, leading to significant wealth accumulation for some demographics and making it difficult for others to compete.

AI will create a sort-of deflationary spiral, where the world will face a massive economic shift towards abundance, challenging the value of traditional assets and financial markets.

This will mean Universal Basic Income (UBI) or Universal Basic Equity (UBE) become necessary as AI-driven economies develop.

Or worse, governments will try and get rid of useless humans.

The media industry and knowledge-based jobs will also be transformed as AI becomes capable of personalising content and interactions at scale, shifting from one-to-many to one-to-one models.

Arguably this has already occurred.

This includes the rise of AI companions and digital personalities that may transform relationships and social interactions, with AI characters becoming best friends or even romantic partners for many people.

Again, arguably this has already occurred.

This shift creates two additional scenarios:

1) The importance of human connection will grow as AI takes over more roles, leaving fewer areas where human labour has any value.

Community will become one of the last bastions of human value.

And anything community-based will become essential for human purpose and survival in a world where AI controls much of the economy.

Businesses and individuals that foster community will have a better chance of success than anyone else.

2) AI will create a world where much of what we see and consume will be digital and easily faked.

Again, blockchains will be central to creating trust through transparency and provenance.

In all of this humans must adapt quickly and with speed, leaning into AI and community to remain relevant in a world of abundance driven by the same AI, where many traditional jobs and businesses will no longer exist.

Be worried.