If AI takes the jobs at all of the companies, how are people going to earn money to buy the products and services the companies make?
Corporations are currently trying to cut short-term costs by replacing human workers with AI agents. Capitalism, because it is driven by competition and quarterly profits, does not require decision makers to consider the long-term, combined impacts of their choices on the economy.
Many industry leaders are aware of the self-defeating nature of this trend but feel compelled to participate so they can remain competitive. In effect, they are all leaping into the AI ocean like lemmings, hoping it will sort itself out, while simultaneously shortening the time workers and economic and regulatory systems have to adapt.
The best way to offset fallout from this trend is for people to make conscious choices about where they spend their money while diversifying their skills with trades that are protected from being taken over by AI.
Conscious choices are necessary because we cannot just move everyone from desk jobs to trade work. That will result in more workers than demand calls for, which means we must all participate in increasing demand for trade skills by changing our lifestyle choices and spending habits.
What’s the most pain-free solution? A portion of society will have to proactively choose a shift towards locally-sourced energy, products, and food. An alternative network of micro-economies must arise, the participants of which must save their spending in the macroeconomy for products and services with no local alternative while prioritizing brands that have made more human-centered decisions. This move towards local resources, products, and services could also help to de-incentivize and slow down the adoption of AI in the stock-market-driven macroeconomy. Those who participate early will be the best positioned for weathering any impending economic fallout.
At first, choosing the sustainable model will feel like a sacrifice, because AI will probably make certain products and services cheaper and more convenient. However, this choice will also bypass many inconsistencies and hassles that are likely to arise as AI continues to infiltrate modern life and digital systems. The emphasis then, must change from quantity and convenience to quality and sustainability.
Instead of purchasing cheap manufactured furniture from a national brand, for example, purchase solid wood pieces made by local craftsmen. They will cost more upfront but can last multiple lifetimes and be repaired, whereas the manufactured version might incorporate cheap materials that fail in just a few years. Instead of purchasing inexpensive factory-farmed animal products and consuming them 5-7 days a week, source them from small, local farms and eat them 2-3 times per week (plant-based diets work too). Supplement your produce needs with a garden and purchase from local farms. If you can afford the upfront cost, localize your energy by installing solar panels and go electric or hybrid for your next vehicle. If you’re able to, start riding a bicycle when conditions allow it. When you feel like purchasing something from Amazon or another large retailer, ask yourself 1) Do I really need this? 2) Can I find it used? 3) Do I have another solution on-hand? 4) Can it be sourced locally?
This lifestyle shift will diversify skills making people more self-sufficient and communities more resilient, and it holds the potential to improve work-life balance. It could make physical and psychological wellness easier to maintain by integrating hobbies and exercise into paid work. That creativity which is currently being stolen and homogenized by AI could be redirected and gain new appreciation through mediums that engage all five senses and retain the soul and unique style of the artist or craftsman.
Catastrophe is only an inevitable outcome if we remain asleep and unwilling to adapt. Through conscious choices and proactive actions that create human-centered, localized economies, we can build a resilient, village-based society that is far less reliant on industries being taken over by AI, and we can ensure that AI is mostly applied where it is best suited for promoting the wellness of people and planet - like discovering new treatments for devastating diseases and refining industrial processes so they are more energy-efficient and less polluting. First though, we should push for laws that ensure AI data centers are carbon-neutral, non-polluting, and not located in ecologically sensitive areas.
As we move forward, I see two diverging paths. On one, people will become overwhelmingly reliant on AI, outsourcing most of their problem solving and production to it. On this path, there will be some winners, at least in the short term, but they will have no plan B. Many others will lose as they fail to adapt their current approach. This is the path of increasing income inequality and decreasing socioeconomic stability. On the other path, people will be choosing a life with more modest potential with regard to short-financial outcomes but also more assurances. They will become reacquainted with the psychological and emotional rewards that come with honest work, tangible results, and a more connected community.
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