Howard Marks Highlights AI's 'Frightening' Consequences for Employment Beyond Financial Concerns

The term "frightening" is how renowned investor Howard Marks described the consequences of AI on jobs.

Marks expressed profound worry about the employment outlook shaped by AI. In a recent blog, he shared his deep concerns regarding individuals whose roles might become redundant due to AI, or those who may find securing employment more challenging.

Having penned memos for over three decades, Marks investigated using AI in crafting his writings in a recent entry.

Prominent figures in technology, including Elon Musk and OpenAI's Sam Altman, have proposed versions of a universal basic income (UBI) as a potential fix for job and income disruptions induced by AI.

Marks, however, argues that even if governments finance UBI, a critical aspect is missed: employment offers more than just salary.

He noted, "Jobs motivate individuals for the day, provide daily structure, contribute a sense of utility within society, and build self-esteem."

Marks expressed anxiety over a future where numerous individuals survive on government aid while lacking productive activities.

Various forecasts exist concerning AI's impact on employment. The IMF suggested that approximately 60% of positions in developed nations might be influenced by AI, with a split between those that benefit and suffer.

A recent publication by McKinsey Global Institute revealed that tech innovations could automate over half the hours worked in the US.

Marks isn't isolated in his fears about the erosion of purpose resulting from disappearing jobs.

Tech advisor Kate O'Neill emphasized in a TED Talk that delegating decision-making and communication to AI might risk losing an essential human trait — deriving meaning from experiences — beyond mere task automation.

James Barrat, author of "The Intelligence Explosion," suggests that people might discover new meaning in a UBI-centric reality through voluntary and community efforts, albeit following a difficult period of job losses.

What should upcoming generations pursue as potential careers?

If AI drastically alters the workforce as anticipated, tech experts recommend that youths focus on developing capabilities that machines struggle to replicate.

Geoffrey Hinton, known as the 'godfather of AI', claimed that routine intellectual jobs are particularly vulnerable.

Earlier in the year, Hinton mentioned, "It will take a significant amount of time before AI excels at physical tasks." He advised considering a trade, like plumbing, as a promising option.

OpenAI's chief economist, Ronnie Chatterji, focuses on teaching his children skills in critical evaluation, emotional intelligence, and adaptability, equipping them for a future where job titles transform faster than educational systems can adapt.

Elon Musk, while acknowledging that some of his older children are aware of how swiftly AI can surpass their abilities, still advocates for pursuing higher education.

Musk shared, "Attending college for social reasons, to connect with peers in an academic setting, is valid."

He further advised, "Embrace learning across a variety of subjects to encompass as much knowledge as possible."