Brendan Foodie predicts that as AI automates digital roles, the displaced workforce will shift to physical world jobs (from robotics data creation to therapy). He argues this is because physical automation progresses much slower than digital automation, which benefits from rapid, self-reinforcing feedback loops.
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With over half of new startup pitches focusing on AI automating existing jobs, the primary solution to this massive displacement is not retraining, but fostering an ecosystem that aggressively creates new companies, new industries, and consequently, new roles.
Unlike past industrial shifts, AI's impact won't be contained to specific industries. Once AI can perfectly replicate a human worker behind a keyboard, video, and mouse, it will trigger a simultaneous displacement wave across all remote-capable jobs.
Historically, humans moved from manual to cognitive labor as technology automated physical tasks. Emad Mostaque argues AI now automates cognitive work, creating an "intelligence inversion." There's no obvious higher-value domain left for human labor to escape to, unlike previous technological shifts.
Using the historical parallel of ATMs, CEO Sim Shabalala argues that AI won't eliminate human roles but will automate routine tasks. This frees humans for higher-order work involving empathy, complex problem-solving, and valuable client interaction.
AI will primarily threaten purely cognitive jobs, but roles combining thought with physical dexterity—like master electricians or plumbers—will thrive. The AI-driven infrastructure boom is increasing demand and pushing their salaries above even those of some Silicon Valley engineers.
AI is rapidly automating knowledge work, making white-collar jobs precarious. In contrast, physical trades requiring dexterity and on-site problem-solving (e.g., plumbing, painting) are much harder to automate. This will increase the value and demand for skilled blue-collar professionals.
Rather than causing mass unemployment, AI's productivity gains will lead to shorter work weeks and more leisure time. This shift creates new economic opportunities and jobs in sectors that cater to this expanded free time, like live events and hospitality, thus rebalancing the labor market.
The initial impact of AI on jobs isn't total replacement. Instead, it automates the most arduous, "long haul" portions of the work, like long-distance truck driving. This frees human workers from the boring parts of their jobs to focus on higher-value, complex "last mile" tasks.
AI will handle most routine tasks, reducing the number of average 'doers'. Those remaining will be either the absolute best in their craft or individuals leveraging AI for superhuman productivity. Everyone else must shift to 'director' roles, focusing on strategy, orchestration, and interpreting AI output.
Automation is hollowing out the labor market from both ends. Robots are replacing low-skill manufacturing jobs, while AI is automating high-skill knowledge work. For now, the most resilient jobs are skilled trades requiring high physical dexterity in unpredictable environments, like plumbing or electrical work.
