Tech billionaire Elon Musk has predicted that money could lose much of its importance by 2036 as advances in artificial intelligence and robotics transform the global economy.
Speaking during an interview with The Economist Editor-in-Chief, Zanny Minton Beddoes, Musk argued that AI could create such an abundance of goods and services that traditional economic systems would be fundamentally reshaped.
“Money won’t matter in 2036,” Musk said.
When Beddoes challenged the prediction, noting that investors in his companies might disagree, Musk responded that money derives its value from the ability to obtain goods and services.
“Well, what do you want money for? You want money for goods and services, right?” he said.
According to Musk, if AI-powered machines eventually produce more food, housing, transportation, entertainment and other essentials than people could consume, the need for money would diminish significantly.
“If that is so abundant that the robots and AI are providing more goods and services than any human could consume, what do you need money for in that case?” he asked.
The discussion also focused on the economic and political challenges of transitioning to such a future.
Beddoes questioned how governments would manage widespread job displacement caused by AI before its benefits become fully realised, warning that public anxiety could fuel demands for higher taxes, greater state intervention or restrictions on technological development.
Responding to questions about supporting displaced workers, Musk suggested governments could provide direct payments to citizens.
“I think the Treasury should just simply issue people cheques,” he said.
When Beddoes argued that such a policy could trigger inflation, Musk maintained that inflation depends on the relationship between money supply and the availability of goods and services.
“Inflation is simply the ratio of money to goods and services,” he said, adding that if AI dramatically increases production, economies could experience deflation instead of inflation.
“I’ll make a prediction, which is that deflation will be the issue, not inflation,” Musk said.
He acknowledged, however, that the rapid growth of artificial intelligence evokes both optimism and concern.
“It’s exhilarating and terrifying,” Musk said. “Honestly, if you ask me on any given day, in fact even intraday, I’ve gone from exhilaration to terror regarding AI.”
While economists continue to debate how AI, automation and productivity will reshape economies, Musk argued that societies may ultimately need to rethink how wealth, income and economic value are distributed if artificial intelligence fundamentally changes the nature of work.