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  Super AI: Creative Destructor of All Things  
  Ray Blanco on 2017-08-07 18:31:35.0
 
 

This post Super AI: Creative Destructor of All Things appeared first on Daily Reckoning.

Two billionaires are sitting in a bar, talking about the future of humanity?

Sounds like the beginning of a witty joke, but this conversation actually happened.

It began as a simple discussion between Elon Musk, Tesla's forward-thinking CEO, and Demis Hassabis, leading creator of advanced AI systems, on the impact AI will actually have on the future of humanity.

At the end of it all, these two geniuses stood on very opposite ends of the spectrum.

According to Musk, super AI is something to fear, not cherish. As Maureen Dowd summed up his position in Vanity Fair?

?One reason we needed to colonize Mars ? so that we'll have a bolt-hole if AI goes rogue and turns on humanity.?

An extreme example, but it's clear there are some who are very resistant to the idea of super AI.

But I'm here to tell you AI is a savior and a great tech trend to bank on.

Creative Destruction for a Better Tomorrow

We can't create new and better jobs without getting rid of less-efficient ones.

That's creative destruction in a nutshell.

One company, Amazon, has mastered creative destruction better than most.

A leader in automation, Amazon has created ingenious ways to streamline costs and increase efficiency.

Robots sort and stock products, drones deliver packages and their software automates your purchasing.

These were all positions that, at one time, a human held? It's understandable that at a glance, some think automation is a job killer.

But the actual data surrounding the automation and AI debate paint a very different picture.

Just the Facts Please

The quarterly headcount of Amazon employees rose from just over 150,000 in 2014 to just under 350,000 human employees in 2016.

And while Amazon's human resources have grown in number, the number of automated robots that Amazon employs has also grown significantly.

From 2014?16, the amount of robots used in Amazon warehouses grew from approximately 15,000 to 45,000.

So what's happening?

As Amazon automates its factories and processes, the immediate impact is a reduction in the price of goods purchased by the consumer.

This creates more demand for products. Which in turn creates more demand for labor, both automated and human, to produce, process and deliver these goods.

And I'm not the only one who's noted this trend.

Rob Atkinson, president of the Information Technology and Innovation Foundation, has this take.

?Automation has never led to fewer jobs in the economy in the past and never will in the future for the simple reason that automation lowers prices, which increases demand for goods and services, which in turn creates demand for jobs.?

Good for One, Good for All

Scaling things up to a macro level, we see the same job growth trends taking hold in industries across the board.

In the first half of 2017, the U.S. economy added a monthly average of 180,000 jobs. The manufacturing sector alone gained 41,000 jobs overall in that six-month period.

Manufacturing is one of the first industries that automates production.

This is creative destruction at work and verified by the numbers.

The best part is this technology is only going to get better, faster and more efficient in the years to come.

Meaning the people who get in earliest on this world-changing trend could stand to make some serious money.

To a bright future,

Ray Blanco
for The Daily Reckoning

The post Super AI: Creative Destructor of All Things appeared first on Daily Reckoning.

 
 
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