Tesla and SpaceX CEO Elon Musk believes advances in artificial intelligence and humanoid robotics could fundamentally reshape the global economy, arguing that traditional money may lose much of its purpose within the next decade.
Speaking in an interview with The Economist Editor-in-Chief Zanny Minton Beddoes, Musk outlined his vision of a future “post-scarcity” economy where AI-powered automation produces goods and services so efficiently that basic economic scarcity largely disappears.
According to Musk, if technology reaches that stage, the need for conventional currency could diminish dramatically as access to essential goods becomes increasingly abundant.
AI and Robotics Could Create an Era of Abundance
Musk’s prediction is based on the rapid development of artificial general intelligence (AGI) and autonomous humanoid robots capable of performing both physical and cognitive work.
He argues that as intelligent machines automate manufacturing, logistics, construction, healthcare and many other industries, production capacity could eventually exceed global consumer demand.
In such a scenario, robots would generate goods and services faster and more cheaply than humans could consume them, dramatically reducing production costs across the economy.
Musk described this future as a “quasi-infinite economy,” where technological productivity replaces human labour as the primary engine of economic output.
Money Exists Because Resources Are Scarce
At the centre of Musk’s argument is the traditional role of money.
Currency functions as a medium of exchange because societies must allocate limited resources such as food, housing, transportation, healthcare and energy.
However, Musk believes that if AI-driven automation makes these resources plentiful and inexpensive, money would gradually lose much of its economic function.
“If robots and AI can provide more goods and services than people could ever consume, the importance of money naturally declines,” Musk suggested during the interview.
Under this model, human employment would become largely optional rather than economically necessary.
People could still choose to work, create businesses or pursue personal projects, but primarily for fulfilment instead of financial survival.
From Universal Basic Income to Universal High Income
Musk also discussed how governments might manage the transition as automation replaces both white-collar and blue-collar jobs.
Rather than relying solely on Universal Basic Income (UBI), he proposed the idea of Universal High Income (UHI), where citizens benefit directly from the enormous productivity generated by autonomous AI systems.
The concept assumes that AI-powered production would become so efficient that governments could distribute greater economic benefits without triggering severe inflation.
According to Musk, traditional economic models may underestimate the deflationary impact of highly automated production.
As robots manufacture larger quantities of goods at increasingly lower costs, prices could fall even while consumer purchasing power rises.
Automation Could Reshape Economic Models
Musk believes large-scale robotics would create two major economic effects.
First, fully automated manufacturing would significantly expand the global supply of products and services.
Second, the increased supply could generate structural deflation by lowering production costs across multiple industries.
Under this framework, technological abundance would offset many inflationary pressures traditionally associated with expanding the money supply.
Whether such an economic transition could occur in practice remains the subject of significant debate among economists, policymakers and technology researchers.
China Emerges as a Major AI Competitor
Beyond economics, Musk also addressed the global race to develop advanced artificial intelligence.
While he acknowledged that American technology companies currently lead in large-scale AI computing infrastructure, he argued that China has demonstrated remarkable efficiency in AI software optimisation, particularly despite restrictions on advanced semiconductor access.
Musk believes continued investment in domestic semiconductor manufacturing and energy infrastructure could position China as one of the world’s dominant AI powers over the coming decade.
The comments reflect growing geopolitical competition as countries invest heavily in AI research, semiconductor production and next-generation computing infrastructure.
A Different View of Future Wealth
Musk’s vision also raises broader questions about how wealth could be measured in an AI-driven economy.
If automation dramatically reduces the cost of producing everyday goods, traditional financial assets may become less central than ownership of critical infrastructure powering the digital economy.
Many industry observers believe future value could increasingly concentrate around scarce digital and physical resources, including computing infrastructure, energy production, semiconductor capacity and blockchain-based networks.
Rather than eliminating economic value altogether, AI-driven abundance could shift investment toward assets that remain difficult to replicate.
A Vision That Sparks Debate
Musk’s prediction of traditional money becoming largely obsolete by 2036 represents one of the more ambitious visions for the future of artificial intelligence.
Supporters argue that rapid advances in robotics and AI could indeed transform global productivity on an unprecedented scale.
Critics, however, note that economic systems are shaped not only by technology but also by politics, regulation, resource distribution and human behaviour, making a fully post-scarcity economy far from certain.
Regardless of whether Musk’s timeline proves accurate, the discussion highlights how advances in AI and automation are increasingly forcing economists, governments and businesses to reconsider the future relationship between technology, work, wealth and money.
