American billionaire entrepreneur Elon Musk has predicted that money could become largely irrelevant by 2036.
He argued that rapid advances in artificial intelligence and robotics will enable the production of more goods and services than humanity could ever consume.
Speaking in an interview with The Economist, Musk said the future of the global economy could be shaped by unprecedented levels of automation, fundamentally changing the role of money in society.
“Money won’t matter in 2036,” Musk said.
When interviewer Zanny Minton Beddoes challenged the prediction, Musk explained that money is primarily a means of accessing goods and services.
“What do you want money for? You want money for goods and services, right? You want money for obviously food, housing, transport, entertainment,” he said.
According to Musk, if AI-powered systems and robots become capable of producing those necessities in virtually unlimited quantities, the need for money would diminish.
“If the robots and AI are providing more goods and services than any human could possibly consume, what do you need money for in that case?” he asked.
In addressing concerns that artificial intelligence could displace millions of workers, the Tesla and SpaceX CEO suggested governments could provide direct financial support to citizens.
“I think the Treasury should just simply issue people cheques,” Musk said.
When concerns were raised that such a policy could trigger inflation, Musk argued that the economic dynamics of an AI-driven future would be fundamentally different.
“Inflation is simply the ratio of money to goods and services,” he explained, predicting that as AI dramatically increases productivity, “deflation will be the issue, not inflation.”
However, despite his optimism about AI’s transformative potential, Musk acknowledged the technology also poses significant risks.
Describing his outlook, he said AI is both “exhilarating and terrifying,” adding that his feelings fluctuate frequently.
“Honestly, if you ask me on any given day, in fact, even intraday, I’ve gone from exhilaration to terror regarding AI,” he said.
