Why Fei-Fei Li and Yann LeCun are both betting on "world models"

Just to clarify, are you starting from the point of view that AI simply does all the jobs we currently have? Were this the case, they’d also surely build robots and design AI themselves yeah? Labor as we know it wouldn’t exist anymore, because would simply be impossible to do useful work.

We’re willing to fork over money for things because those things require human effort to obtain, and we’d rather not expend it. In this new world, everything from the extraction of raw materials to the production of advanced technology would require no human effort. If our modern notions of property still persisted, however, then this doesn’t mean that people would simply have whatever they wanted. You need trees to get apples, you need a hole in the ground to get coal. Ultimately the limiting factor on everything would come down to land. Labor-time is replaced with land-time, because the land works itself. Not having land in this society would be like not having limbs or a brain in ours. You would have nothing to exchange in order to get the things you needed.

So I’d say that either the notion of property itself would change, or people without property would die until everyone had some amount of it, and people would generally occupy their time with various games that shuffled around the limited amount of land available as a proxy for social status. The flawed assumption that you make is that people would all have some amount of land in which to make their microfactory, but this would only be the case after lots of people died.

>AI simply does all the jobs we currently have?

Not really. It would be good at doing generic, well-defined tasks but bad at doing specialized, novel tasks. You would still need some humans in the loop to get to the bottom of niche problems.

I agree that it would still go to hell without some type of Georgism or UBI or socialism. I agree that wealth will transfer to companies that control industrial means of production (like 3M or mining companies or intel or something), but it will also transfer out of companies whose moat is based on control of human capital (like accounting, software development, and law).

I think that even before AI, we are already seeing this sort of "land is everything" economy. Physical labor has largely been automated in the industrial revolution. Intellectual labor has been displaced not by newfangled AI mechanisms, but by information storage mediums and general pre-AI automation. If you are an artist, you are competing with all of the art that came before you. If you are an engineer, you are reinventing the wheel working on some sort of project that, if open sourced, would only need to be done once.

A major sense in which AI eliminates jobs is by acting as a bypass for copyright, it allows you to plausibly make a near-copy of something without a license. There is simply not an infinite amount of demand in the economy for intellectual labor. The thing that destroys the world as we know it is not so much AI, but information sharing and de-duplication of work. Open source would have destroyed the economy if AI didn't.

So everyone is working in the service sector now, it's unsustainable. Property prices keep going up, fertility rate keeps going down.

John Von Neumann would disagree with you :

"If people do not believe that mathematics is simple, it is only because they do not realize how complicated life is."