Elon Musk Predicts AI and Robotics Will Transform Economy

Elon Musk, the CEO of Tesla and SpaceX, has made a bold prediction that AI and robotics will transform the economy, leading to universal high income and eliminating the need for individuals to save money.

In a recent post on X, Musk commented on investor Ray Dalio's announcement regarding Trump Accounts, which are new savings and investment accounts for young Americans created by the One Big Beautiful Bill Act.

While he acknowledged this philanthropic effort as a nice gesture, Musk believes that due to advancements in AI and robotics, saving money will become redundant. At the Viva Technology conference in Paris in May twenty twenty-four, Musk addressed concerns regarding job displacement caused by AI, stating that in an ideal scenario, most people would not need to work since AI and robots will perform tasks more efficiently.

He posits that there is an 80 percent probability that AI will result in a future where jobs are optional, with work becoming more of a hobby than a necessity. In this envisioned future, Musk suggests the focus will shift to finding meaning in life, as machines will outperform humans in nearly every task.

Furthermore, Musk claims that AI and robotics represent the only viable solutions to the U.S. debt crisis, predicting that money itself will lose its relevance as these technologies evolve. He reiterated his views in November, explaining that work will become optional, akin to choosing to engage in sports or video games.

Musk is also working to align his business interests, including aiming for 80 percent of Tesla's value to derive from his Optimus robots, despite facing production delays and executive departures.