Robots & AI as Additional Labor

Global GDP will only grow when the workers whose jobs were taken by Artificial intelligence and Robots find other jobs. Google’s AlphaGo just took one step further towards this and it’s time to think about replacement jobs.

Google’s AlphaGo code have now won a tournament against Lee Sedol who is the planet’s second-ranked Go player (see video below). Mr. Sedol won one time by setting up multiple equally good scenarios for the computer and it got confused about the bigger picture. However, the progress has been called one of the most important steps forward in Artificial Intelligence (AI) in recent history. This is because the game GO has endless possible moves at every turn and the computer can not brute force the problem with countless millions of scenarios to the endgame.

Additionally, Google has also revealed that its robot researchers have developed the ability to pick up objects only registered by cognitive life forms. Both breakthroughs will possibly have economic and geopolitical significance in the future. Looking at the service sector, manufacturing, industrial, logistics and the global supply chain.

What are the Robots jobs? Repeatable, easy-to-define physical tasks. This is typically low-wage factory work etc. Jobs that in recent decades have moved to China. If Robots become competitive with low-income earners in Asia, when jobs will probably move back to the developed countries due to transportation cost savings. The local electricity price will also come to play in this scenario. More mobile Robots will probably, in the beginning, have energy storage problems which lead to limited usability. What are the AIs jobs? Repeatable, easy-to-define mental tasks. This is computer input jobs like different kind of clerks, basic translation or accountants etc. This profession is typically held today by middle-income earners. AI will have problems where human contact is required, however, easily digital work will be its specialty. The AI lives in computer centers that require a good internet connection, cheap electricity, and inexpensive cooling. This will impact the developed countries were more middle-income citizens will be required to get an even higher education and specialization. What are the Humans jobs? Non-repeatable, hard-to-define mental and physical tasks. The physical tasks are usually performed by low to middle-income workers in construction, logistics, car manufacturing, metal work etc. That is location specific were robots can’t move easily. The mental jobs are usually creative and emotional jobs that are not usually automated. This is jobs of professors, consultants, writers etc. These jobs usually are performed by higher than middle-income earners. Robots and AI will probably be used as a tool or assistant to these physical and mental jobs.

In the end, we believe that Robots and Artificial Intelligence will play a more significant role in the future. Robots/AI will slowly replace the human workforce due to cost savings and their effectiveness. Human labor will, therefore, alter to other more creative and emotional jobs and this will alter global trading patterns due to competition with low-wage countries.

AI lives in huge data centers and they need inexpensive electricity and cheap cooling. Canada and the Nordic countries in Europe could, therefore, receive more investment due to the cold climate.

The biggest improvement with AlphaGo is the use of neural networks that is based on the human brain. This gives the computer a model to identify patterns and react compare to brute forcing the problem with all possible combinations.

The United States is at the forefront of this area and will, therefore, reap the rewards and challenges. Research and development in AI and Robotics will give countries and companies an economic advantage in global trade.