Why you shouldn't be afraid of AI

GM. This is Work "After" Work, where we cut through the business buzz like a Samurai sword through bamboo - smooth, effortless, and straight to the point.

It’s Taco Tuesday, let’s dig in:

• 🤖  Why you shouldn’t be afraid of AI

• 😂 Meme of the day

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WHY YOU SHOULDN’T BE AFRAID OF AI

I hear it all the time “AI is coming for your job!”

Fear not, today I am going to put you at ease and give you the information to have confidence in navigating this exciting but nerve-racking time.

Consider this my PSA to not fear AI.

First off, it’s important to acknowledge that everyone saying “AI is coming for your job.” isn’t totally wrong. AI will be disruptive and make certain jobs obsolete (I’ll hit on the sectors to get out of later). 

But this isn’t new. 

There’s one HUGE thing they’re missing that the news doesn’t want you to hear (since it doesn’t get clicks).

Every technological shift or productivity improvement we’ve had has led to new jobs.

In fact, throughout history, every time we’ve experienced a major productivity improvement the number of new jobs created has been greater than the jobs made obsolete with the new tech. 

Here’s a great chart that illustrates this.

There’s a lot going on here so let me break it down for you.

This chart shows the components that make up GDP aka how much value our country creates every year. You’ll see the gray bars consistently increasing over time (meaning our economy is growing) and the components of GDP staying relatively flat.

So barring a world war, the components of GDP stay relatively flat over long periods of time and the economy keeps growing.

So if this is true, what happens when you have a revolution?

Take the industrial revolution for example (the shift from farms to factories).

You can see the income and employment of this space essentially go to zero. This is what people are afraid of with the AI revolution.

But guess what came out of this? New factory jobs, mechanics, machine operators, rail workers, etc. 

You’d think that the economy and job creation would decrease but productivity has the opposite effect. It creates more jobs. 

So even though machines essentially destroyed the agriculture sector, the economy still grew and new jobs were created. 

This final chart sums up my point perfectly.

You see, over time, as we’ve become more productive compensation has tracked. Meaning every time we find a new way of innovating (which will be the AI revolution) new jobs are created.

People were banging the same drum when computers first came out. This New York Times article from 1983 stated how computers were going to lead to huge unemployment numbers making only people with degrees candidates for jobs.

Well we all know how that went. These jobs weren’t eliminated. They were enhanced. The worker who used to do everything with pen and paper could now do 10x what they could in the past and new sub-sectors emerged. 

I think the same is set to happen with AI. It won’t replace your job, it will make you more productive. 

So this begs the question “If a worker is 100x more productive, won’t companies stop hiring as many workers?”

I don’t think so.

If creating an architectural blueprint normally takes 3 weeks but with AI takes 6 hours. It would make sense that the company would hire less. But this isn’t historically what happens.

Usually, volume goes up aka more and better architectural blueprints are created, costs come down, and the industry booms.

But like we’ve seen, with any revolution some sectors are gone forever. The customer service space seems to be the easiest for AI to wipe out. And it’s already savings companies, like Klarna, $40 million a year.

But new job classes will appear. Do you think every company will have a CEAIO “Chief Executive AI Officer”? I do. And here’s 20 other job classes likely to emerge with the AI revolution.

So the next time you hear “AI is coming for your job.” Take a step back and realize that revolutions aren’t new. This one just feels more personal because you’re living it.

Revolutions knock out certain sectors (so make sure you research which ones to not be in) but mostly just make the current workers more productive.

I hope this put you at ease and got you excited about AI because I sure am!

That’s all from me. Have a good one!

PS: If you enjoyed this newsletter, check out the All-In Podcast. It has great information and all the hosts are extremely successful businessmen. I included many examples from the podcast in my email today.

MEME OF THE DAY

Anyone else watch the eclipse yesterday?! DQ was getting in on the action 😂😂

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.