I want to talk about expectation versus reality in regards to AI in workforce.

People anticipate that AI will simplify our work, freeing up time for employees and companies alike.

We hope that with AI we can accomplish ten times the amount of work in less time, affording us more time for family, vacations, and potentially benefiting from a universal basic income (UBI).

It's a fantastic idea, but unfortunately, we live in a capitalist world, which operates differently than a socialist one.

More Likely "Hypothetical" Scenario

Let's consider a hypothetical situation where a Company "ABC" employs 100 people.

Suppose they successfully adopt new AI technology, enabling only 10 of their employees to accomplish the work previously done by 90.

The company lays off the 90 surplus employees, leaving just 10 employees equipped with AI tools and automation.

These remaining employees are now liberated. They are working just three hours a day, can complete a week's worth of work in just few days. The 4 hour workweek is normalized and most employees work 2-4 hours per day.

But here's the catch. (of course!)

In our capitalist world, those 90 laid off employees still need to feed their families and pay their bills.

...and without a UBI, they are desperate.

One of them might approach Company ABC and offer to work five days a weekforsix hours a day, promising to increase the company's output by 150%, compared to current employees working only 4 days and few hours per day.

The company, prioritizing profit over employee welfare, is likely to take up the offer by replacing one of the remaining 10 employees with more committed, more hardworking more dedicated candidate.

This cycle continues as more of the unemployed workforce willing to work longer hours for the same pay. This dynamic will make the job market highly competitive.

But What About UBI?!

Let's unpack this.

You might argue that the government could enforce a UBI, but that's a complex issue.

Companies, having automated most of their operations and employing remote workers, can relocate to countries with more favorable tax laws.

Whether they're manufacturing physical goods or providing digital services, automation eliminates the need for a local workforce, removing language barriers and cultural issues.

They could set up their !automated! factories anywhere: US, Europe, or the middle of the Sahara Desert. They can also incorporate anywhere in the world to avoid pesky taxes.

They could incorporate in any part of the world, hire a small team of AI experts, and evade any laws forcing them to pay UBI or taxes.

While some companies may choose to stay and pay taxes, or even provide lifelong retirement pay to laid-off employees, this is unlikely.

UBI Is Ultimate Control

We're facing a grim reality where the government may control UBI, along with everything else we do. They may implement control over digital currency and dictate how we live, what we can eat, and whether we are allowed to travel. All based on "climate credits" or other social scoring systems.

You could choose to reject UBI and the restrictions it places on your freedoms, but then you risk losing access to healthcare and education for your children.

People fail to understand that AI is largely controlled by governments and large corporations. Despite open source AI being competitive, it lacks the influence and political power to make a meaningful impact.

Is AI Bad For Us?

I'm not pessimistic about AI, I'm simply a realist.

The best way to prepare for this shift is to become a problem solver rather than a laborer. Start your own business, utilize AI, and you'll be able to weather the major labor transition in history.

As others are laid off, you'll have your pick of the top talent at a fraction of the cost.