summarize this video? companies have been trying to cut down on workers  for as long as those workers have demanded pay and  
benefits whether it's downsizing Outsourcing  streamlining understaffing or automating if  
there is something a business can do to get rid  of workers and their salaries you better believe  
they are going to do it but this time does feel a  little bit different recent AI advances have been  
mocked for not quite living up to the Bold claims  of their Tech bro Founders but even in their  
current imperfect form llms General use robots  and generative models are already replacing jobs  
and they are getting better every day so that's  bad for workers but if you're a senior corporate  
executive or company owner maybe you should be  asking yourself if we automate everybody's job  
who is going to buy all of your [ __ ] a new  study out today predicting almost half of all  
Global jobs could be affected by artificial  intelligence that 40% of all jobs around the  
world will be impacted by Ai and found AI could  replace 300 million full-time jobs including  
positions in the legal and Engineering Fields so  far there are nine robots here doing the work of  
more than 250 humans I have some good news and  some bad news for your theoretical company the  
The Good News
good news is that labor reduction systems of  all varieties have already cut out millions  
of manh hours in America alone and made the  workers who are left more efficient at their  
jobs artificial intelligence is just another tool  that your company can use to get more work out a  
fewer staff or replace teams entirely even here at  little o Works Media Group we used to have someone  
working part-time whose job it was to cut out  images on Photoshop to use in our goofy little  
animations now Adobe suite has inbuilt AI features  which can automatically remove backgrounds from  
any image with absolutely no human Tim or skill  involved now we love our editors so we gave him  
more work editing our history videos but there  are a lot of companies that now don't need to or  
don't want to employ people for these simple jobs  according to a survey of 697 companies conducted  
by Metro g a research and strategic advisory  firm whatever that means companies who did not  
use AI in calendar 2023 hired 89% more agents than  those who did use AI in their contact centers for  
existing employees it was even worse when AI was  added to a contact center 36.8% of companies laid  
off an average of 26.1% of their employees these  alarming numbers were within just one year and  
just within call centers which have already been  hit by Outsourcing understaffing and automation  
harder than most other Professional Services  for now so congratulations your business now  
has reduced headcount and significantly reduced  expenses But Here Comes the bad news in 1914 Henry  
Ford doubled the salary of his Factory workers to  $5 per day The Story Goes he did this because he  
wanted all of his employees to be able to afford  a Ford Model tea of Their Own boosting company  
Revenue now this is basically complete nonsense in  reality Ford just wanted to reduce that turnover  
and denied talent to up-and-coming car companies  like Dodge to maintain his Monopoly over the  
growing automobile industry but as with every  good fairy tale there is negative truth in there  
if the employment rate suddenly drops as hard  as it did in the call centers from the study in  
every company around the world then companies will  undeniably struggle with reduced Revenue as people  
without jobs don't have the buying power they  once did and even people with jobs will cut back  
out of fear that they might be next but there is a  business plan that you as a hypothetical Titan of  
Industry might want to consider so that this isn't  a problem and that's just making stuff exclusively  
for other wealthy business owners while diverting  resources away from people who have nothing to  
offer you that can't be done more efficiently by  a machine or a cheaper worker on the other side  
of the world now if you think that sounds a bit  crazy you should know that it's already kind of  
happening and the best place to see it is in video  games yes those occasionally fun distractions  
from real life are the perfect example of the  shift happening in the real world right now so  
let me cook according to Grand View research the  video game industry is now bigger than the movie  
music and television Industries combined and it is  honed in its most profitable strategy free-to-play  
games are ironically some of the most profitable  games on the market because they have perfected  
a business strategy called freemium pricing most  people will play their games for free but a select  
few a affectionately known in the industry  as Wales will spend thousands sometimes even  
millions of dollars on a single game to unlock  in-game perks that would be almost impossible  
to obtain as a free User it's important that these  games still have free users though because without  
them the wheels would have nobody to show off to  or pone with their paid for advantages in a world  
where people are looking for budget-friendly forms  of entertainment the game industry has realized  
that the best way to turn a profit is toer to  those who have the financial means or at the very  
least the credit limit to spend ridiculous amounts  of money on a video game the people who have the  
most financial means don't work for their money  they own income producing assets and if automation  
does replace jobs on an even more widespread scale  that will make your ability to work less valuable  
and simultaneously income producing assets more  valuable the rate of change in Ai and automation  
makes the future impossible to predict but if the  people investing in these Technologies want to  
see a financial return on that investment they are  going to learn what the game industry already has  
there is more money to be made by catering  to other rich people and everybody else can  
be kept around as entertainment now if you think  that sounds a bit depressing well welcome to this  
channel but also I should tell you that market  trends already say this is happening AI isn't  
going to change your world it's just going to  continue a trend that's already been happening  
for years now so it's time to learn how money  Works to find out how companies are adapting to  
a world where nobody can afford anything anymore  this this week's lesson is sponsored by brilliant  
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off an annual premium subscription in the 1992  movie Glen Gary Glenn Ross the iconic always be  
closing scene has Alec Baldwin's character  bragging to another salesman about driving  
an $80,000 BMW adjusted for $1 1992 according to  the Bureau of Labor Statistics that would be the  
equivalent of just under $182,000 today that is  a very expensive automobile to be sure but these  
days if you drive around a major city you likely  to see dozens of cars that cost that much or more  
and they probably wouldn't even stand out that  much according to company sales data and historic  
records Lamborghini has sold more cars in the last  10 years alone than it did in all the rest of the  
company's history combined because there is simply  a bigger market for $300,000 cars than ever before  
the same general trend is true for Other Extreme  luxury Brands like Bentley Ferrari Paddock Philipe  
luxury groceries at aroan gym memberships that  cost more than rent hotels that make Hilton look  
like a Holiday Inn and to top it off private  jets are all now way more popular than they  
ever have been one thing that often gets lost  in discussions of wealth inequality is that yes  
billionaires are getting richer but there are also  far more rich people around than ever before and  
it's because the value of an hour of human labor  has stayed more or less stagnant while the value  
of an asset and the availability of credit has  skyrocketed people who held on to an even modest  
portfolio over the last 4 years now have enormous  fortunes certain individuals got incredibly lucky  
with good Investments and other people accessed  easy credit to get absolutely jacked to the tits  
on Leverage and ride the longest asset Bull Run in  history very few people have made Modern fortunes  
through work alone and you might have even noticed  how investing went from something that you should  
do to secure your retirement to something you need  to do to have any quality of life at all if robots  
really do take over then it will just continue  to push the value of an hour of human work down  
because it could be done by a machine instead and  it will rally the value of assets because business  
owners and investors will benefit from the Free  Labor substitute this is where people point to  
policy fixes like a universal basic income if  you haven't heard about this idea by now that's  
Universal Basic Income
impressive but it's basically a government payment  made to everybody regardless of personal financial  
conditions that should be enough to cover basic  living expenses it's been proposed as a solution  
to keep the whole system going if people can't  earn an income for themselves because their  
labor has been outsourced or automated but that  is still not a desirable outcome for anybody if  
comprehensive automation of human labor gets as  far as needing this then you will fall into one  
of two defined classes of people you will either  be getting by based on a government Lifeline or  
you will be in the class of people that own the  businesses complaining about all the taxes they  
need to pay to fund that Lifeline I find it a  little bit easier to sympathize with one of those  
groups but there are still no winners just last  week the result of one of the most comprehensive  
Universal basic income experiments was published  the research gave 1,000 people living in Texas  
and Illinois $1,000 a month with no conditions  attached to qualify for this study their 2019  
household income had to be less than 300% of the  federal poverty line or $ 37,40 for an individual  
there was also an unlucky control group of 2,000  people who were only given $50 a month this is  
because when your personal finances are being  studied you are more likely to be careful about  
your spending decisions and the researchers wanted  to control for these changes the study itself was  
funded by an organization called open research  which is not technically affiliated with open  
AI but they are both managed by Sam Alman who  has been very vocal about how this technology  
could displace billions of jobs now if you ever  find yourself running an AI startup that burns  
millions of dollars a day then one of the best  ways to ensure that you keep that investor money  
coming is to pretend to be really scared about  how your technology is going to replace workers  
because well replacing workers is really exciting  to investors so realistically this study was  
probably little more than marketing stun conducted  by one of the best funded organizations in the  
space but that doesn't mean that the results  aren't still interesting the key results related  
to employment was that the group that received  the $1,000 payment ended up earning significantly  
less for themselves than the control group after  the payment was accounted for they still earned  
more but $122,000 a loan is not enough to live  anywhere in America without other forms of support  
all households ended up earning more but that was  largely because this experiment started right at  
the beginning of Co when employment particularly  in low-wage professions was hurt by lockdowns the  
reason the researchers gave as to why households  receiving the subsidy ended up earning less money  
for themselves was because many people took it  as an opportunity to cut down on how much they  
were working and commit more time to leisure  in looking after their family this fits the  
optimistic idea of an AI future where we can have  machines do everything for us while we just relax  
and collect Universal basic income but the finding  still told a story of people who were financially  
struggling mental health improved because people  were less stressed but those improvements Faded  
by the end of the first year food security also  increased but again only in the first year as  
even people with additional income fell victim  to Rising living expenses and that was when  
they could work to earn additional money when  compared to being plunged into poverty it's an  
okay compromise but this isn't going to happen  overnight Outsourcing turned entire cities in  
America into ghost towns but it happened so slowly  that big changes like this never got addressed the  
endgame for people investing in automation is  to build that automated utopian future the end  
game for everyone else is to make sure that they  aren't excluded from it now if you want to get  
these videos a day early and get articles that  can never be made into YouTube videos then be  
sure to subscribe to my email newsletter Linked  In the video description now while everybody is  
worried about not getting enough work there is one  country that has decided the solution is getting  
people to work 6 days a week so go and watch  this video to keep on learning how money works