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How confident are you in AI? Enough to bet your retirement on it?
That's become a debate thanks to a bold proclamation by Elon Musk: Saving for retirement in 10 or 20 years "won't matter."
Musk's confidence comes from the work he's doing in artificial intelligence. The technological advancements will create an "abundance" of resources, granting everyone a "universal high income," the Tesla and SpaceX CEO said.
That's easy to say when you have checks notes and almost passes out nearly $700 billion in the bank. What about people whose net worths have a lot fewer zeros?
A group of BI reporters reached out to seven personal finance and AI gurus to get their take. They all agreed you shouldn't stop those direct deposits into your 401(K).
Even if AI increases productivity and reduces costs over time, it's not clear whether the benefits will be distributed evenly across the population.
Meanwhile, Americans are already in a precarious position regarding their retirement. Last year, BI's Noah Sheidlower spoke to nearly 200 Americans who continue to work past the age of 80 as part of our "80 over 80" series.
While some like the fact that they can still work, others don't have a choice. And that's with the benefit of Social Security, a safety net that might not exist in the future.
What do you think? Let us know here.
You can't completely discredit Musk's take, though.
Yes, forgoing retirement on the belief that AI and tech will just figure it out in a few decades is a massive gamble. But the past few years have reminded us that tech can quickly flip the script on conventional wisdom.
Five years ago, a career as a computer programmer felt secure. Now … not so much.
It's not a new phenomenon. My colleague Alistair Barr recently wrote in his Tech Memo newsletter (subscribe here!) that the US quickly went from having 25 million horses to fewer than two million thanks to the arrival of the steam engine.
Even if Musk is right, you'll probably still want some extra pocket change. Money isn't just about being able to buy things. It's also about access and exclusivity, and it's not clear how that might work in this new utopia.
It's not just going to Disney World; it's being able to cut the lines. It's not just getting tickets to the game; it's sitting courtside.
But if everyone's got "universal high income," how will those perks work? Will all of us be equal? Or maybe some of us will be more equal than others?
