THE IMPACT OF AI & ROBOTICS ON JOBS

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Amazon, the online retailer behemoth, is the second-largest private employer in the U.S. – 1.5 million people. It’s also one of the largest investors in AI. It’s building out fully autonomous warehouses… It’s working to automate the delivery process with self-driving vans and delivery drones… and 30% of its “workforce” are already robots.

Robots don’t sleep. They don’t take vacations. They never need a break. So, let me ask you this: How much longer until Amazon decides these robots are ready to take on the full workload of its 1.5 million remaining workers? And what do you think will happen when 1.5 million hardworking Americans are suddenly out of a job?

Amazon is far from the only giant that has done this. Walmart Inc. (WMT), the largest private employer in the U.S., is rolling out fully automated distribution centers using a combination of AI and robots. The company’s distribution centers come with one big catch: No people.

Finding good critical thinkers is one of the most difficult things in business. I’m talking about “knowledge workers” – i.e., accountants, business strategists, lawyers, and doctors – who make optimal decisions, are good at problem-solving, can strategize, and always act in the business’s best interests.

The only thing more difficult than finding one good knowledge worker… is finding multiple. For most of the modern era, knowledge work was difficult to scale. These professions typically require years of education, on-the-job training, and experience. That adds up to lots of time and money.

But now, ChatGPT and other forms of AI are killing that paradigm. It makes it so that businesses can scale critical thinking and knowledge work. It doesn’t matter if you have a blue or white collar: AI could threaten your job.

The Quantum Leap

AI is more of a threat now than it was when ChatGPT made its debut in 2022 because of quantum computing.

In classical computing, data is encoded in binary bits. Transistors are like tiny switches that can either be in the on or off position – represented by ones and zeroes.

Every app you use, website you go to, and photo you take is made up of millions of combinations of ones and zeroes. However, a new kind of computing power surpasses the binary limitations of classical computers.

Quantum computers use quantum bits, or qubits, which can represent both 0 and 1 simultaneously due to a concept called superposition. If this all sounds a little confusing, don’t worry. Here’s the critical thing you need to know… Quantum computers allow for multiple computational pathways to be explored at the same time, opening new avenues and speeds for solving complex problems.

Imagine you have a large library and you’re trying to find a specific book. In classical computing, you would search for the book by examining each bookshelf and book one at a time until you find the right one. This approach can be time-consuming, especially if the book you’re looking for is in the back of the library. But imagine a computer so powerful it can explore all the books at once… That’s quantum computing.

It’s been said that the differences between quantum computers and classical computers are even more vast than those between classical computers and pen and paper. That may be an understatement.

We’re talking about machines so advanced that they can instantly execute calculations that would take the world’s most advanced supercomputers nearly half a century to process. It’s not like the transition from the horse and buggy to the automobile. It’s more like horse and buggy to the SR-71 Blackbird… the fastest jet ever made. The difference is utterly mind-blowing.

Quantum computing is real and it’s here. You can think of it as the turbocharger for artificial intelligence. It makes AI faster, more efficient, and more precise.

Quantum computing will give us the ability to solve intractable problems that take so long to tackle using today’s computers that no one even bothers trying. We’re talking about the ability to create, replicate, and commercialize complex analytical thinking and precise physical movement on a scale never seen before… This is the next huge leap forward for the digital elite… the people who have been getting rich while most Americans have been getting left behind.

With quantum computing, the digital elite will have AI that is not constrained by computational speed. Quantum-powered AI will drive efficiencies by getting rid of human workers and driving up corporate profits. No matter the job, robots, software and AI – powered by a new breed of computer – will be able to do it better and cheaper.

I expect that in the quantum era, we will see more technological progress in one month than we are seeing in three years from now. This is the societal and economic equivalent of a 10,000-foot mega-tsunami. It’s about to slam into our world and alter the trajectory of our country forever.

Governments that already have a debt problem that is out of control will be unable to address this unemployment problem and anarchy and lawlessness will be the outcome. The scene is being set for the Biblical prophesied rise of the Antichrist and a one-world government. The recent UN Pact for the Future where world leaders made a landmark declaration pledging concrete actions towards a safer, more peaceful, sustainable, and inclusive world for tomorrow’s generations is a significant move towards a one-world government. My next post will give more detail on the Pact for the Future.

TECHNOCHASM & THE END TIMES

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A chasm has opened in America… a great divide. On one side… a new aristocracy, amassing more wealth, more quickly than any other group in American history. Today, the one percent makes more money in one month than most people make in a lifetime. On the other side… The opposite is happening. Wealth is flowing out of the pockets of ordinary Americans at an unprecedented rate. Today, nearly 80% of Americans are living paycheck to paycheck.

This chasm between the rich and poor is only going to get larger and is one of the reasons Jesus must return to restore righteousness. Prior to God destroying this Earth by fire, it has another 1,000 years with Jesus ruling and reigning with the glorified Saints. The nation God established for His purposes, Israel, will finally fulfill its destiny but only with Jesus ruling from a new Jerusalem.

“From His (Jesus) mouth comes a sharp sword with which to strike down the nations, and he will rule them with a rod of iron. He will tread the winepress of the fury of the wrath of God the Almighty. On his robe and on his thigh he has a name written, King of kings and Lord of lords.” Revelation 19:15-16

Then we will have had 6,000 years of unregenerate man ruling the world under the influence of Satan and his demons followed by 1,000 years with Jesus and the Saints ruling the nations with a rod of iron. At 7,000 years this Earth’s history is complete.

“Then comes the end, when he (Jesus) delivers the kingdom to God the Father after destroying every rule and every authority and power. For he must reign until he has put all his enemies under his feet. The last enemy to be destroyed is death.” 1 Corinthians 15:24-26

Then comes the second resurrection of the dead followed by the White Throne judgement and only then does John see a new Jerusalem descending from a new Heaven onto a new Earth where only the righteous dwell.

CHASM BETWEEN RICH AND THE POOR

Over the last four decades, advancements in computing power, data storage, communications gear, artificial intelligence, and other technologies have followed a trajectory like you see on the left side of the chart below. This is because they started at very low levels. But after many years of advancing at exponential rates, technologies are entering the “liftoff” phase.

This rapid increase in the rate at which the world is changing has stunning business and investment ramifications. The world around us is changing at never-before-seen speeds… the speed and capabilities of our computers are increasing at unfathomable rates… And it’s catching many people off guard.

This is creating a gigantic shift in the way our economy works and how we build wealth. Today, the acceleration of our technological progress allows companies to operate with just a fraction of the number of employees businesses used to require. Forty years ago, it took the work of tens of thousands of people to build a business worth $20 BILLION or more. Now, some businesses can do it with less than 2,000 people. For example, in 2019, the workplace software company Slack achieved a market value of $23 BILLION. It had less than 1,700 employees. Getting to a $23 BILLION valuation with just 1,700 employees never used to happen! Back in 1989, Kodak had about 145,000 employees and was valued at around $16 BILLION… But in 2017, Snapchat achieved a $24 BILLION valuation and had just 1,800 employees. Back in 1964, AT&T had more than 750,000 employees… But in 2017, Google was a bigger and far richer company than AT&T with 92% fewer employees sharing the wealth. Plus, people who invested in Google when it went public made about 17 times more gains than those who invested in AT&T over the same time.

The best new companies of today simply don’t need many people compared to companies from a decade or two ago. The number of great jobs is decreasing while the pay for these employees getting the jobs is radically soaring! This is why the wealth gap gets wider and wider every single year. The incredible rise in computing power, automation, and robotics makes all these things possible. The rules of business and building wealth are being rewritten in front of our very eyes. Over the last few decades, it took on average about 20 years for the typical Fortune 500 company to reach a market capitalization of $1 BILLION.

In 1998, Google reached $1 BILLION in market cap in just eight years, which was considered incredible. By 2004, Facebook had done it in just five years. By 2009, Uber had done it in under three years. In 2012, virtual reality firm Oculus did it in under two years. From 2012 to today, Facebook shareholders enjoyed as much as a 1,507% return on their investment. From 2010 to today, Tesla investors have made as much as 9,100% gains. Snapchat investors have made as much as 1,213% since 2018. By now, you can see how in many cases the time it takes for massive change is getting “compressed.” Industries are being transformed in a short time. As a result, new industries are springing up at a rapid and ever-increasing pace… while old industries are being disrupted at a rapid and ever-increasing pace. It will wreck family businesses, careers, and investment portfolios. New industries are springing up at a rapid and ever-increasing pace… while old industries are being demolished at a rapid and ever-increasing pace. As Uber and Lyft soared to billion-dollar valuations, the old taxi industry was devastated. It lost millions of dollars in revenue.

Since 2004, at least 1,800 American newspapers have ceased publication. The sector has shed 47% of its jobs during this time. Amazon has transformed the way we shop and get our stuff. In the process, it’s driven dozens of old-school “brick and mortar” retailers into bankruptcy. Department stores have lost 18 times more jobs than coal mining since 2001. In less than seven years, Uber demolished the “old” taxi industry. Airbnb now offers more rooms than the top five hotel brands, including Hilton, Marriott, and Hyatt, combined… Google has taken over information… by 2012, Encyclopedia Britannica published its final volumes, after 244 years of circulation. Spotify and iTunes have turned the music world upside down. Facebook, YouTube, Twitter, and Instagram have disrupted traditional media outlets… 

The information in this post was taken from an article by Louis Navellier of Investor Place (an investment advisory service)