Over the past couple years I have seen more articles appearing on the topics of artificial intelligence, robots, and/or automation. The concept is not a new one and has spawned many science fiction novels, television shows, and movies. The most prominent of them all is probably the Terminator franchise that began in 1984. The premise being that humans in the future have created a “killer robot” with artificial intelligence that has subsequently decided to destroy the human race. We have yet to create a robot that is intent on destroying the human race but we have created one that can flip hamburgers, drive you to and from a location, or even look at your past shopping habits and determine what you are likely to purchase in the near future. Thus, the main concern is not about their desire to literally kill us but to kill our jobs.
Killers or Creators
It is highly likely that you have interacted with some form of artificial intelligence at this point as it has become somewhat ubiquitous. If you have purchased anything online or been on social media you have interacted with artificial intelligence, potentially without knowing it. Historically, those interactions would have to be done with a human. This leads many to assume that, because a robot has taken the place of a live human being that is paid for their services, the robot has therefore taken that human’s job. Technically, those that argue this point are correct. But is that a bad thing? The answer lies in the concept of creative destruction, which refers to the process by which innovation destroys outdated products and/or services to create new ones.
Creative Destruction
In my opinion, the most prominent example of creative destruction is Apple. Apple was founded in 1976 as a desktop computer company and today employs over 115,000 people. Apple upset the mobile phone and desktop computer market with the advent of the now ubiquitous iPhone. Apple without a doubt has been the direct cause of individuals losing their jobs. However, they have created countless more. For instance, when apple created the concept of “apps” for its first smart phone there were approximately 500 in 2008. As of March of 2017, there are over 2.2 million apps created by developers from around the world. This does not include the ancillary companies that assist Apple in building, distributing, and marketing each aspect of the smart phone itself. Thus, there are potentially millions of jobs that were created as a direct result of Apple’s innovation.
Innovation should not be feared but welcomed. The machines we create do and will kill some jobs, but they will also create others that tend to be higher paying than those lost. The process of creative destruction creates a distinctive opportunity for those with the foresight to recognize it. In June of 2007 Apple released the first iPhone and their stock traded around $17 per share. It currently trades around 8 times that amount at $140 per share. I firmly believe the next “Apple” is out there creating opportunities that we can partake in. The first step is embracing the changes that the robots create as the investment opportunities they are. Do not fear the robots, they have not come to kill us. The only thing they will kill is your net worth, and that’s only if you bet against them.
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