Tesla and SpaceX CEO Elon Musk has predicted that Artificial Intelligence (AI) and robotics will transform the global economy to the point where money may no longer matter by 2036, as advances in technology drive an unprecedented abundance of goods and services.
Speaking during an interview with The Economist editor-in-chief, Zanny Minton Beddoes, Musk argued that money derives its value from the availability of goods and services.
He said that if AI-powered systems and robots could produce more than people could consume, the traditional role of money would diminish.
“You want money for goods and services. If robots and AI are providing more goods and services than any human could possibly consume, what do you need money for?” he said.
Beddoes, however, questioned how governments and societies would navigate the transition to such a future, citing concerns over job losses, widening inequality and political instability caused by widespread automation.
She suggested that governments might need to introduce large-scale wealth redistribution measures, higher taxes on capital or a universal basic income to support workers displaced by AI.
In response, Musk proposed that governments could provide direct financial support to citizens through regular payments.
He also rejected concerns that such measures would necessarily trigger inflation, arguing that conventional economic principles may not apply in an AI-driven economy where the production of goods and services expands dramatically.
According to Musk, deflation, rather than inflation, could become the greater economic challenge in the future.
Despite acknowledging the logic behind Musk’s economic arguments, Beddoes expressed doubts about the political feasibility of such a transition, warning that fears over AI-related job losses could fuel public backlash, demands for nationalisation and higher taxes, and broader economic disruption.
Musk admitted he remains conflicted about the future of artificial intelligence, saying his views fluctuate between optimism and concern.
The billionaire also reiterated his belief that artificial intelligence will continue to advance regardless of attempts to stop it, arguing that efforts should instead focus on ensuring the technology develops safely.
He predicted that AI could surpass the combined intelligence of all humans within the next five years, while maintaining that its long-term benefits could outweigh the risks if its development is carefully managed.