721: AI Robots - the USA and China - how these will shape the new world order
06-02-2025
Artificial Intelligence and Knowledge Based Systems have been 40 years in development. Indeed one could take an Master Degree in this subject back in 1985. But in January 2023 ChatGPT was launched that frankly changed everything. The app went viral and everyone was astonished. It was proof that AI had finally arrived in earnest. Meanwhile Tesla and the Chinese were busy developing humanoid robots – trying to master the dexterity that humans have using complex actuators. Within the last two years - development have gone exponential as the best engineers, scientist and technologists on the planet have been sucked into developing AI bots that promise to transform the manufacturing, automotive and healthcare sectors in the hardware form – along with AI agents and ultra-intelligent systems in their software form.
Let us be crystal clear. AI, autonomous transport and robots are going to rapidly change the world we live in. Some even believe they will lead to the extinction of mankind. It’s very difficult to “uninvent” new technology – and reverse technological “progress”. Look at the atom bomb as a good example. Make no mistake – AI humanoid robots will be developed for the battlefield – at least as a new deterrent. The USA and China – like Germany and the USA for the atom bomb – are in a race to achieve this new deterrent. There is no-one in the press talking about this – we are all in denial that this is happening. But it almost 100% for certain must be happening. It’s just logic.
We doubt governments and politicians all around the world have not thought this through yet. They don’t know what’s just about to hit them. Academics and civil services probably don’t want to breath the trust for fear of losing funding and support from governments. The brutal truth is that there is a significant chance – or risk – that millions of AI robots if not correctly programmed and/or controlled – will be able to think for themselves very soon and turn on human beings. We might find rather than everyone worrying about the risk of being murdered by human beings – this get’s displaced by the fear of being murders by a humanoid robot. It could be a humanoid robot programmed to look after your – social care or health care support that decides to go rogue. This is not fantasy – they will be programmed to reason. They will be exceptionally strong and fast. With a mere swipe of their arms they will be able to seriously hurt or kill a human being. They wont need arms or guns to do this.
The promise of a utopian future where robots do all the work, create gigantically efficient GDP output that allows human to work zero hours but live in beautiful properties and eat the best food is the aim – is certainly possible. The goal.
But a dystopian future where AI robots go rogue – we lose control – then they start to target human being like in the film Terminator – is a distinct possibility. It’s a real risk. Yes it’s scary. It’s not the plan. But logically thinking – it has to be a low case scenario.
We have to urgently invent a way of keeping ourselves safe from ultra-intelligent AI Humanoid Robots. I doubt whether anyone has any answers just yet. There will be a massive prize for anyone that develops a foul proof was of ultimately controlling rogue robots. It’s definitely a priority since it’s just around the corner – it’s about 2-5 years away.
Leaders need to harness AI robots to improve human being’s lives – not risk or destroy them.
There are some seriously intelligent people working on AI humanoid robots – like Elon Musk. He seems to be able to think 10-20 years ahead of everyone else – his brain seems to works like a master chess player. May be we are thinking too much about this – but Elon Musk thinks humans will eventually destroy earth – and that’s why he stated he is developing SpaceX to allow human to colonise Mars – as an escape raft. It sound like a Si-Fi film – but it’s regrettably just around the corner. We are now entering an exponential technological age where development are running exponentially faster each year. Most people are clueless – in the dark – have not though – about what is happening. It’s only the engineers, scientists, some business people and some academics that realise what’s happening. But to talk about it openly – well, frankly people don’t want to hear about it, or would think you were mad to mention it. They are in denial. It’s our duty – to flag this – since it’s very much linked to investing. Which businesses will succeed and which will fail in this exponential age.
We’ll help by listing the winners and losers. Take note – our predictions will come true – we have no doubt. It’s been decades in the making and it’s just arrived. Do not ignore.
Winners
AI humanoid robots
AI agents
Autonomous vehicles
Electric vehicles
Low cost energy – nuclear, gas, hydro, solar, battery storage – depending on location
AI datacentres
Bitcoin and the top cryptocurrencies
Safety systems around robotic controls
Software engineering developers and robotic control engineers
Human robotic maintenance coordination of robots to mend robots
Luxury tourism for Americans and Chinese
Senior engineering/science executives with AI and robotics experience
Safety-security systems for the ultra-wealthy
Healthcare for the ultra-wealthy
USA and China – the two world leaders in the above
Norway, Saudi Arabia and UAE – who are embracing AI and Bitcoin – also with low cost energy
Losers
City centre shops/retail
Financial sector jobs
Manufacturing worker job
Professional jobs most of which can be done by AI agents better than humans
Taxi drivers, lorry drivers, all drivers
Healthcare for the middle class and poor
UK and Western Europe – because of their high cost energy and inefficient slow bureaucracies
For young people – it is essential to remain employed to get trained up soonest in the use and operation of advance AI.
For people who are mid-career with kids – it is essential you try and steer your kids into AI, engineering and science to then be able to get a job within AI, automation and/or robotics – the employment threat is just around the corner – in the next 2-5 years. It’s already starting to affect employment. Just look at the UK’s miserable employment performance in the last six months – sliding into recession. The UK does not have the depth and breadth of AI and robotics talent.
And in any case, no-one will want to build AI datacentres because of electricity prices and six times higher than in the USA and twelve times those in China. Yes – you heard it here first. It’s simply not going to happen. We will be forced to buy compute capacity from the USA or China – via the Cloud. None of this revenue will be made in the UK.
We have already outsourced AI Datacentre being of Ed Miliband’s deluded wind turbine and solar farm strategy whilst he destroys the low cost gas and oil from the North Sea through gigantic 87% tax burdens. We’ll waste not more time of this topic since it’s now baked in stone – he and Labour have set the scene for even higher electricity prices in years to come just when we need them halved for AI datacentres. Anyone that thinks the UK will lead in AI robots is frankly deluded!
The real battle is between the USA and China. Two super powers competing to be the biggest and best. You know how it goes. The world is full of bullies at the top. Even more so today than in the past – when we had some rational heads like Merkel. Now we have weak leadership in most of Europe, the UK, Canada – with strong minded leadership in the USA, China, Russia and Saudi Arabia. India is a bit of an unknown entity – though with 1.5 billion people and a rapidly growing economy and expanding population.
The issue is – the two superpowers and competing head-on in AI and robotics. All other countries will be subordinated – ignored. It’s not a pleasant recipe when you have a right wing democracy and a communist autocracy vying to be the worlds superpower. The USA seems to have it in for China. And China has a deep seated distrust of the USA. Where this all heads and end is uncertain. One thing is for sure, the threat of war is high. Taiwan and it’s semi-conductors could be the trigger point. If China invades Taiwan – expect the USA to step in – then its WWIII. No question. We certainly hope this trigger never comes about – it would be disastrous for everyone in the world. Mad men. Yes – we have some mad men in charge. So to say it’s never going to happen is rather deluded. We normally have currency wars, then trade worlds, then world wars. We have shifted from one to two. So it’s not a stretch to say three will not happen regrettably.
It's also worth highlighting what President Putin will do after 35% of hist bomber plane were wiped out in a single drone attack on 1 June. These almost irreplaceable Soviet Era bombers cannot be easily replaced.
This year it’s 18 years since the last financial crisis in 2007 – and they normally say the financial cycles come every 18 years. So don’t be surprized if the next crisis is starting – being flagged by rising bond yields as economies slow down. Something very weird. The bond market is the “canary in the coal mine” they say. The re-set could be a gigantic pivot to Bitcoin – the decentralised global truth currency. Just watch Bitcoin – in the next 6 weeks!
We hope you have found this Special Report enlightening and helpful for your thoughts and ideas on property investing and all other competing investments