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Citigroup Inc. (NYSE: C) is looking to cut half of its 20,000 tech and operations staff and replace them with artificial intelligence, robotics, and other forms of automation.
Goldman Sachs International is looking to do something similar.
This is according to a series of interviews in the Financial Times.
A Gallup survey of 3,000 Americans released in March shows that 73% felt that AI would kill more jobs than it creates. That tracks with a 2016 survey by the Pew Research Center in which 65% said automation that includes AI would replace "much" of the work done now by humans.
People are scared - and I understand why.
But there's a much bigger story here - and it's a positive one for job seekers.
It's a positive story for technology investors, too - so you know you'll want to pay attention to this.
The truth is, AI-led automation is not a zero-sum proposition.
So, today let's drill beneath these alarmist headlines.
Let's discover how AI-driven automation is actually sparking a jobs boom.
Check it out...
An AI Odyssey
We recently celebrated the 50th anniversary one of the great, groundbreaking films of all time.
For millions of Americans, the debut of "2001: A Space Odyssey" on April 3, 1968, served as their intro into the world of artificial intelligence. And it came with quite a negative point of view.
Recall that the AI-powered HAL 9000 computer takes over the spaceship Discovery One, and even kills one astronaut.
To this day, many Americans remain leery of AI thanks to "2001."
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However, Stanley Kubrick's film had such a powerful impact on me that I've followed the world of AI - both its positive and negative effects - ever since.
In recent years, AI has become synonymous with automation and robotics because the three are now tightly intertwined as factories all over the world adopt these high-output platforms.
While the mainstream media is focused on automation's job-killing prospects, I believe that AI will be a long-term boon to the economy.
And I've got several pieces of empirical data to back that stance up...
- Last month, the Asian Development Bank said automation had created an extra 34 million jobs in the region. That's because the tech lowered prices while improving quality for Asian goods.
- In a 2017 study, Deloitte found that automation in the United Kingdom had destroyed 800,000 jobs in the past 15 years. But over that same period, it had created 3 million jobs - and they paid an average $13,500 more than the old ones.
- The Centre for European Economic Research predicts that by 2021 industrial employment in its home market of Germany will rise by 1.8%. The study says that's because the tech is making those factories more competitive.
- And a June 2017 study sponsored by Salesforce.com Inc. (NYSE: CRM) puts the economic impact of AI at $1.1 trillion by 2021 - and that's just for cloud-based revenue in the customer relationship management end of the cloud computing sector.
So, it's exciting news to see global chip leader and Silicon Valley pioneer Intel Corp. (Nasdaq: INTC) focus so heavily on AI.
In September 2017, Intel unveiled an experimental "neuromorphic" chip called Loihi. As Intel says, this chip compares "machines with the human brain." It can "read" its environment and become constantly smarter.
In fact, Loihi mimics many of the basic neural pathways in the human brain by packing 130,000 neurons and 139,000 synapses into 128 computer cores.
But as much as I find Intel's new breakthrough highly exciting, there is an even better way for technology investors like you to play this emerging field.
Fact is, as important as AI chips are becoming, they are useless without one key device - computer memory.
And this firm delivers...
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.