Will AI ever replace humans?

Over the past two years, the notion that AI will replace humans has dominated conversations. Addressing this topic is no simple task, but let's endeavor to approach it from a more practical standpoint.

To comprehend the essence of innovation, it's imperative to consider why we innovate in the first place. We innovate primarily to tackle problems, and the underlying motive is to enhance the human experience. In economic terms, an improved human experience results in a higher number of returning customers, and a consistent customer base translates to sustainable income. Ultimately, the success of innovation is measured by its commercial viability.

The reason for elucidating the above is to underscore the fact that, in a general sense, innovation is rarely an altruistic endeavor. The most successful innovations attract customers, and more customers mean revenue for the innovator.

So, what happens when AI steps in to replace human labor? Undoubtedly, AI excels at tasks, leading to increased production for a nation. However, the income of individual humans takes a sharp decline as they begin to lose jobs. With reduced income, people have less purchasing power, which, in turn, affects their ability to purchase products and services.

AI continues to flood the market with its efficiently produced goods, benefiting companies by reducing labor costs. However, it simultaneously depletes the pool of potential buyers, as many humans simply lack the financial means to make purchases.

Gradually, this scenario erodes the market. Companies find themselves in a quandary, with diminishing incentive to innovate. The repercussions begin to affect AI as well, as a lack of customers equates to a lack of business opportunities.

It's crucial to remember that the success of a product hinges on the presence of buyers. In a nutshell, AI is here to enhance the human experience, and that is its fundamental purpose. All other speculations about AI replacing humans in the modern economy are largely sensationalized.