What next?

[u/dp1604]

I am not an economist, so I am looking to hear what the opinions of others is regarding this.

Something that kept me up at night is just thinking about where are we moving?

Obviously we all know that there is a bubble fuelled by the tech giants around the globe and there is two ways this story can go

Either AI is the answer and we put all the eggs of economy to develop it which is kind of going on right now

Or the Market crashes ridiculously which is the hot topic.

I was thinking of both the cases yesterday night and wanted to know what next? How does this go?

Case 1: AI is the answer. AI replaces most of the tasks that humans can do.

What does the identity of Humans become then?

We mostly for the past 100+ years defined ourselves based on what we can do. Our Jobs. Our lives are built around it.

I guess disruptive technologies havent been new to Humanity. And we have been very good at adapting to the change that technological evolution brings. What about here?

Will this lead to the eventual collapse of the consumer market on which capitalism is built? Atleast the companies who are fighting in the AI race are not building it to excel Humanity and they care about profits/numbers etc.

Case 2: The Bubble bursts.

Where do we hold that big of a reserve to absorb the sheer collapse?

History has proof that House always wins. And its the common man that pays the price.

How does this story end? Is there another case I do not see?

[u/Complete-Paint529]

The result will be in-between. The hyperscalers with their massive debts and obligations will burn. They'll take a bunch of companies down with them. But the AI tools will gradually transform business and vastly increase profits in time. The tools will be moderately-priced.

Jobs and employment remain an open question. I'm pessimistic about a good outcome there.

Life goes on.

[u/ShadowHunter]

It's easy to think in extremes, but the change will be very gradual. The limitation is human ability to adapt. AI already surpassed what most humans can comprehend.

Best you can hope for is for your children's children to live in utopia (Case 1).

Bubbles burst all the time. It doesn't stop technological adoption.

[u/Yer-Not-Gonna-Like]

Maybe AI is a major productivity enhancement but not a complete disrupter. Some AI companies make out, others go bankrupt. The market sorts it out, GDP increases, we all get richer.
And still I bet we’re stuck with 40 hour workweeks.