According to Elon Musk, the convergence of artificial intelligence (AI) and advanced robotics will dismantle capitalism as we know it within 20 years. The billionaire predicts that work will become an optional activity and the concept of money itself will lose its value and meaning, as all human needs could be met by technology at a very low cost. However, other tech leaders like Vinod Khosla warn that this transition depends entirely on the government. Other experts caution that without regulations to manage wealth redistribution through measures such as Universal Basic Income, technological advancement could lead to a dystopia of concentrated power rather than an era of abundance.
Value of money
Traditionally, economic success is measured through the accumulation of capital and professional advancement. However, for Elon Musk, this system has an expiration date. The founder of Tesla and SpaceX argues that the value of cash is declining due to a technology-driven transformation. In his appearance on the podcast People by WTF, Musk was clear about the fate of finances: “I think money disappears as a concept, honestly.” In his view, automation led by artificial intelligence (AI) and robotics will allow all of society’s demands to be met at very low costs, eliminating the need for human labor.
“If AI and robotics are big enough to satisfy all human needs, then money is no longer necessary. Its relevance declines dramatically,” said the magnate. Under this premise, all those basic tasks necessary for the functioning of a society, such as building housing, producing food, and providing medical or educational services, could be carried out at a cost close to zero. This would cause wages to cease being the engine that keeps the economy turning. Musk also referred to science fiction literature and cited Iain M. Banks’ The Culture series, where technology frees citizens so that they can dedicate their lives to their true passions.
An utopian future
Musk not only envisions this utopian scenario, but he also puts fairly short timeframes on the table. The entrepreneur believes that this change could happen much sooner than expected: “In less than 20 years—but maybe even as little as 10 or 15 years—the advancements in AI and robotics will bring us to the point where working is optional.” This is not the first time Musk has referred to this kind of futurism, as he already stated it two years ago to then British Prime Minister Rishi Sunak.
What other voices say
Although this approach may sound appealing, the truth is that Musk is not known for being accurate in his predictions. As early as 1930, economist John Maynard Keynes forecasted a 15-hour workweek by the year 2030 thanks to technological progress, and here we are, still working more than 40 hours a week. However, some important voices in the sector, such as Avital Balwit, head of personnel at Anthropic, believe that this time is different and stated, “If we do manage to obtain a world where people have their material needs met but also have no need to work, aristocrats could be a relevant comparison”.
On the other hand, billionaire Vinod Khosla, an investor in Amazon, Google, and OpenAI, warns that the success of this future depends on the state; otherwise, it will become an ‘economic dystopia,’ with wealth concentrated at the top. His solution lies in government regulation and the implementation of a universal basic income to ensure that the disappearance of work does not mean the loss of a meaningful life.
Frequently asked questions
Why does Elon Musk claim that money will no longer be necessary?
He argues that AI and robotics will produce food, housing, and services at an almost zero cost. As scarcity disappears, money would lose its function, and work would become an optional activity.
When is work expected to become “optional”?
Musk estimates that this transition will occur within 10 to 20 years. He compares this future to a utopia where citizens live like aristocrats, dedicating themselves only to their personal passions.
What risks exist and how do they propose to solve them?
Investors like Vinod Khosla warn of an “economic dystopia” if wealth remains solely in the hands of technology owners. The proposed solution is government intervention through a universal basic income.
