The future is not a mystery. Almost everything will be targeted by Generative AI in the near future. The reason behind this is that machines will soon possess the ability to perceive and interact with the world in real-time, which will pave the way for advancements in robotics. This realization has led Elon Musk to steer Tesla towards becoming a robotics company. He acknowledges that it is easier to develop robots for controlled factory environments compared to navigating the complex and unpredictable streets with autonomous cars. The main hurdle will be constructing the robots and obtaining the necessary raw materials, such as steel, aluminum, copper, and others. The pace at which this transformation is approaching is fast, and yet, many markets and individuals are affected by a cognitive bias known as normalcy bias and normalcy paralysis. This bias causes people to underestimate the likelihood of encountering a disastrous or catastrophic event. To put it simply, I believe that unemployment will rise to 20%, even in the most robust economies.

Jensen Huang has been warning us, stating earlier this week that AI will impact heavy industries. He is now cautioning that agentic AI will also lead to job displacement. It is puzzling why people are ignoring these warnings or assuming they know better than someone who built a company that became the largest in the world. How will it unfold?Initially, company profit margins will soar as workers are gradually replaced, but eventually, demand will decline as people find themselves with limited spending power. The labor market will be flooded, resulting in an excess supply of workers and pushing the unemployment rate to over 20%. The political consequences of this development are uncertain, but certainly chaotic.