After looking at the above image one can conclude that these data came out just because of the introduction of Artificial Intelligence in the market which is substituting humans. Now a genuine question can arise that how AI is going to help us if it’ll destroy the economy while people are losing their jobs because of it. Let me clarify everything in detail here. 

In simplest form, Artificial Intelligence (AI) refers to the ability of computer systems to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. 

AI systems use algorithms and mathematical models to analyze and process vast amounts of data to learn and improve over time, similar to how humans learn from experience. These systems can be trained to recognize patterns, classify information, make predictions, and solve problems. 

Artificial Intelligence is the 4^th wave of Industrial Revolution as it is the next step of computer revolution that was the part of 3^rd Industrial Revolution. 

Industrial Revolution 

The Industrial Revolution refers to a period of significant technological, economic, and social change that began in the mid-18th century and continued into the 19th century. During this time, there was a shift from manual labor and agricultural-based economies to machine-based manufacturing and industrial production. 

The Industrial Revolution was marked by the invention and development of new machines and technologies, such as the steam engine, textile machinery, and iron production techniques. These innovations led to increased productivity, efficiency, and profitability in industries such as textiles, transportation, and agriculture. 

The Industrial Revolution also had significant social and economic impacts, including the growth of cities, the rise of the middle class, and the expansion of international trade. The changes brought about by the Industrial Revolution paved the way for the modern era and laid the foundation for many of the technological advancements and economic systems that exist today. 

The Industrial Revolution was the main reason why Great Britain was able to build the largest empire in the world. But to the surprise of many, that was not the only industrial revolution that knocked off the world’s top Superpowers from their throne. But there have been multiple industrial revolutions. 

The 1st Industrial Revolution (IR 1.0) is known for producing Steam Engines and Small Machine tools. But the 2nd Industrial Revolution (IR 2.0) occurred between 1870-1914, during this time, the US started rapidly adapting to new technologies such as electricity, railroads, telegraph, telephone, mass production of steel, petroleum, Combustion Engines and much more. Because the United States adopted these technologies first, there was a surge in productivity and surpassed Great Britain as the world’s top economic Superpower. In fact, by 1900, the western world became much more technologically advanced than the rest of the world. Smaller countries like Germany and France had reached the same economic level as the Superpowers of hundred years earlier had, which were India and China. So the winner of the 2nd industrial revolution was America because they adapted to the newer technology first. 

Soon after the 2nd Industrial Revolution, came the 3rd Industrial Revolution (IR 3.0). This was the period of the 20th century, where we witnessed the invention of computers. software, automobiles, nuclear technology and electronics. The US, Japan, USSR, Germany and France were the five countries that picked up on these technologies at an accelerated pace and became the global Superpowers of a larger part of the 20th century. 

This brings us to the present where we are today. 

I am not sure, whether you know it or not, we are currently going through the 4th Industrial Revolution (IR 4.0).  

INDUSTRIAL REVOLUTIONS 4.0 

Artificial Intelligence and Automation 

The 4 Industrial Revolution (IR 4.0) is heavily tied to an event that is currently going on, called Artificial Intelligence (Al) Arms Race. The general public focuses on the novelty of Al and its applications, whereas the governments and large corporations around the world are quietly gearing up for the next economic and militaristic battle for world domination through Artificial Intelligence. Well, the current leaders in Artificial Intelligence are the US and China. In 2014, US former secretary of Defence, Chuck Hagel said and I quote “Artificial Intelligence (AI) will define the next generation of warfare, 

The United States government has been investing around $8 Billion per year into Artificial Intelligence research and technology. One of the biggest projects called “Sea Hunter” which is a fully functional American warship is currently in its final stage of testing before becoming an official part of the US Navy. The benefits of having artificial intelligence (AI) run warship is substantial in regard to the Navy’s budget. This’s because typical warships with full crew members cost the maintenance of around $700K per day. But Sea Hunter, an Artificial Intelligence warship will cost only $15K per day which makes it 98% more efficient than a human warship. 

When you see the milestones of Artificial Intelligence (AI) history, most of them come from US private companies and US universities like Google, IBM, Amazon, Tesla, SpaceX or MIT. Private companies and universities might actually be the US’s biggest advantage in maintaining its dominance as the world’s biggest Superpower. 

Singapore, for example, has been rated as the No 1 country in regards to Al implementation into its own economy. South Korea has the highest Al investment per capita than anywhere in the world. Russia is having 30% of its military run by Al-enabled Robotic, Germany and France are producing more computer science, math and engineering graduates per capita than anywhere else in the world. 

Artificial Intelligence (AI) has got a bright and promising future in INDIA. Al has the possibility to add $1 trillion or 15% of the present gross value to the Indian economy in the next 10 years. Al can provide large incremental value to sectors, for example, energy, retail, manufacturing, healthcare, education, and agriculture. 

All this means that many major countries around the world have realized the importance of Artificial Intelligence and Automation in regards to the future global Economy and Military. There would likely be a scenario where in the next 30 years at least one Military power will have a large portion of their Military run by Al. In the immediate future, the biggest Implications of the Artificial Intelligence Arms Race will likely come from the economics of Al 

As Artificial Intelligence gets a little more sophisticated, more jobs will be automated. One study shows that from 2010- 2018, around 1.7 million manufacturing jobs were lost due to Al and automation. Another study shows 20 million more manufacturing jobs could be replaced by Al and automation by 2030. From a Corporate perspective, this makes sense. Corporations and Countries that adopt Al will have an increase in efficiency that has not been seen since industrial revolutions. This is because the machines are 100% more efficient in manufacturing compared to humans. Besides, you don’t have to pay machines monthly salaries, there are no limitations like 8 hours workday, 5 days’ work a week or sick days. 

Do you know which is the most common job in the USA today?? Is it a cashier, or a farmer or a construction worker? Well, it’s actually a Driver. This is where you take into account the millions of truck drivers, rideshare drivers (Uber) or delivery drivers. Now at a point where Al is sophisticated enough, a self-driving Tesla vehicle is 9 times safer than a human driver under average weather conditions. All this means, once the regulations for autonomous driving are passed in the world, whatever country adapts full autonomous driving first will likely have the most efficient and safe transportation sector on the planet. This will drop the prices of everything like transportation oil, food, packages, and virtually anything that depends on trucks, trains, cars or even ships. 

Well, there will be a lot of new jobs available that haven’t been invented yet. Think about it, 1990 jobs such as web developers, social media related jobs, App developers or tons of other technical jobs or consultation jobs, were not even invented yet. But today, many of them are the top amongst the 100 common jobs in the world. 

If you think about how much Artificial Intelligence (AI) runs your lives, compared to the last decade or so, you will realize why countries around the world are investing in these new technologies. Everything you search online is filtered based on an algorithm that companies like Google or Amazon find suitable to you, you are buying items online, and some of the delivery processes are currently being done by Al. 

All in all, one thing remains true, countries around the world are preparing to have their economy and military able to run on Artificial Intelligence (AI) and automation. Whichever country develops the best Al, whether it’s utilized economically or combatively that country will likely become the world’s new Superpower and the winner of the 4th Industrial Revolution (4.0). 

“Turning Layoffs into Opportunities 

AI is leading to layoffs and economic crises can often be devastating for individuals who lose their jobs. When Employee are laid off, they are often left with a range of emotions, including shock, disappointment, and uncertainty. However, some individuals use this moment as an opportunity to reassess their careers and consider starting their own business. In fact, many successful startups have been founded by individuals who were previously laid off or fired from their jobs. For example: Square – Jack Dorsey, the co-founder of Twitter, started Square in 2009 during the global financial crisis. The company provides payment processing services for small businesses and has since become a public company valued at over $100 billion. 

WhatsApp: – Jan Koum, the co-founder of WhatsApp, was laid off from his job at Yahoo in 2009. He started WhatsApp, a messaging app, with his friend Brian Acton, which was later acquired by Facebook for $19 billion. 

Uber: Travis Kalanick, the co-founder of Uber, was facing unemployment when he came up with the idea for the ride hailing platform. The company has since grown into a global transportation giant valued at over $70 billion. 

These examples show how challenging times can lead to the creation of innovative and successful startups that have transformed entire industries.