‘There will be no need of money by 2036!’ Elon Musk’s claim sparked a new debate, know what is his view on AI

New Delhi. The debate about Artificial Intelligence (AI) is intense across the world and meanwhile, a statement by billionaire businessman Elon Musk has become a topic of discussion. Musk believes that if AI and robotics continue to advance at the current pace, the global economy could be completely transformed in the coming years. According to him, by the year 2036, a situation may arise where the importance of money in the traditional sense will reduce considerably or it will become irrelevant.

However, this is Musk’s personal assessment and estimation of the future, not an established economic conclusion or official forecast.

Why can the importance of money decrease?

Elon Musk argues that money is important today because the availability of goods and services is limited. If AI and advanced robots start producing on a large scale and almost everything needed becomes available in abundance, then the prices of goods can become extremely low. In such a situation, the basic needs of the people will be fulfilled at very low cost and the role of money will not be the same as before.

Will falling prices, not inflation, be the challenge?

Musk believes that the biggest economic concern in the future may not be inflation but deflation. He says that AI based production capacity can increase so much that there will be a glut of goods in the market and their prices will start falling continuously. In economics this is called deflation, where there is a continuous decline in the prices of goods and services.

Will people get income without work?

During a conversation, Musk was asked what would happen to people’s income if a large number of jobs were lost due to AI? On this he suggested that governments can consider models like providing direct financial assistance or regular payments to citizens.

Musk said that if production capacity increases too much, then providing additional money can reduce the possibility of inflation increasing in the traditional way. However, economists have different opinions on this idea and there is no broad consensus on it.

Enthusiasm and concern about AI

While Musk has been a longtime supporter of AI, he has also warned about its potential dangers. He says that AI can create unprecedented opportunities for humanity, but it can also pose serious risks if its development occurs without adequate safeguards.

He admitted that his view on AI keeps changing from time to time. Sometimes they find this technology extremely beneficial for human civilization, and sometimes they are worried about its possible side effects.

Dependence on AI will increase in the next few years

Elon Musk estimates that in the coming few years, the capabilities of AI may increase so much that it surpasses human expertise in many areas. He believes that the biggest challenge now is not to stop the development of AI, but to make it safe, transparent and in line with human interests, so that its use in future proves beneficial for the society.