Time to grow a veggie patch?
I recently wrote an article for The Australian, titled, How AI boom and a liquidity crisis are threatening to upend markets. It garnered quite a few comments highlighting a range of opinions about where artificial intelligence (AI) is headed and where it might be taking humanity.
The “AI Revolution” is being sold to us as either a sleek, inevitable future of effortless productivity or one of the Four Horsemen of the Apocalypse bringing destruction to humanity, first by laying waste to the workforce.
But peering into the digital town square – the comment sections where real people are processing the shift – the picture is more nuanced, sceptical, and occasionally hilarious.
From jokes about “Skynet” and “Terminators” to more considered concerns about the stability of the power grid, the vox pop on AI is moving past the hype and into a reality-check phase.
Here’s my synthesis, based on those comments, of the current mood: the promises, the pitfalls, and the potential for a massive economic reshuffle.
One of the most grounded critiques of the AI boom isn’t about the software at all – it’s about the hardware and the electricity required to keep it running. As many observers have noted, AI proponents envision a world of 24/7 data centres, but our current energy infrastructure is struggling to keep up.
Wind and solar are cheap but “non-dispatchable.” When the sun goes down, data centres (which can’t tolerate interruptions) need a steady reliable supply of power, and a lot of it. Meanwhile, current lithium-ion technology is great for a few hours, but we lack the long-duration storage (8+ hours) needed to bridge weather-related gaps.
Consequently, there’s a growing chorus calling for a rethink of energy policy – including nuclear and gas – to prevent the AI boom from triggering an energy crisis.
Economists call it “creative destruction.”
While some view AI as a job-killer, others see it as a long-overdue “leveller” that will trim the fat from bloated bureaucracies. I have been fascinated by the comments section, which might produce a reasonably accurate picture of the Post-AI workforce.
Vox Pop’s New Workforce Hierarchy
|
Likely “Losers” |
Likely “Winners” |
|
Public service administrators |
“Tradies” (Plumbers, Electricians) |
|
Middle management & Compliance |
Primary producers and farmers |
|
Entry-level “Grad” roles |
Engineers and Scientists |
|
Low-skill office/clerical work |
High-value, creative problem solvers |
As one commenter aptly put it: “Can AI fix a blocked toilet at midnight?” Probably not. But as another commenter noted, “it might help the plumber find the leak 30% faster or navigate complex council regulations in seconds.” The “Time of the Tradie” may be emerging, as hands-on skills become harder to automate than spreadsheet management.
Human wants
History is littered with failed predictions of mass leisure. Malthus predicted starvation; Keynes predicted a 15-hour work week. Neither accounted for the fact that human wants are infinite.
“What was not predicted is how human wants evolve… we have had an explosion of the service economy where ordinary people expect annual holidays and gardeners. Humans are very good at growing their wants and making work to keep people occupied.” – Paul
Even if AI makes certain tasks obsolete, it’s expected we’ll invent new roles – potentially in areas like “AI forensic validation” to ensure the bots aren’t hallucinating interest calculations or legal advice.
Meanwhile, the comments demonstrated a palpable frustration with “career politicians” who seem ill-equipped to handle the speed of the transition.
Concerns range from:
- The “unemployed consumer”: If 10–20 per cent of the population loses their job to automation, who is left to buy the products?
- Social safety nets: Calls for a “liveable wage” or an “AI tax” are growing, as the current tax and welfare systems seem built for a pre-AI age.
- The education gap: While the West produces Arts and Law graduates, competitors like China are focusing on the scientists and engineers who will actually build and maintain the next generation of robotics.
Cool your jets?
Perhaps the wisest take is the most cautious one. At this stage, AI is a tool – one prone to “hallucinations” and errors that require human oversight. As one individual observed, “Natural stupidity will always trump artificial intelligence.”
The bubble may burst, or it may evolve into a quiet, efficient utility. But for now, the advice is simple: start a veggie patch – just in case.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
