Weekly Wisdom | The AI Moment
When AI Saves The Day
Imagine a future where you book a robotaxi ride to take you to the gym. During that time, an AI-powered drone from Amazon or Walmart drops off your groceries on your front porch. And Grok has just finalized the details on your upcoming trip to Europe. This high-tech future is just around the corner, and it will rapidly reshape the economy for the better.
Here are some facts about the state of AI and its coming evolution:
We are currently seeing rapid acceleration in two areas of AI: large language models (e.g., ChatGPT or Grok) and physical AI, such as robotics and robotaxis.
Large language models, or LLMs, are rapidly advancing in their capabilities while simultaneously being trained to perform real economic tasks. For example, ChatGPT is being integrated into major retailers like Shopify and Walmart to aid in search and shopping. Also, ChatGPT is being trained to assist junior investment bankers with research and data analysis.
Recent reporting indicates that Amazon intends to replace 600,000 workers with robots in the coming years. Of course, this is only possible due to the recent advancements in physical AI, which gives machines intelligence about the real (physical) world.
Tesla and Waymo, a subsidiary of Alphabet, will have robotaxis in 20 major cities by the end of 2026. The addition of robotaxis will make our roads safer and will drastically reduce personal transportation costs and other economic externalities.
On the health front, Google’s AI model recently formulated a hypothesis about cancer cells that scientists later validated. As LLMs become more intelligent, human-like behaviors and breakthroughs will increase.
If all goes well, AI will drive deflation across nearly every industry and make us all more productive. This looks like a future that brings us lower prices, greater overall wealth, and more free time! After several decades of economic stagnation for the middle class, these developments would bring revolutionary change to a burnt-out American workforce that needs a well-deserved break.
