Why artificial intelligence might make money obsolete—but only for some things
In short: We often imagine a future where AI creates such extreme abundance that money disappears. But money isn't just currency; it is a rationing system for scarcity. To truly end money, we have to solve the fundamental problem of physical limits, not just digital ones.
To understand if AI can render money irrelevant, we must first define what money actually does. It functions as a mechanism to decide who gets access to scarce resources: food, housing, land, energy, and labor. For money to become obsolete, the scarcity of these physical goods would have to shrink dramatically. While AI has already begun to erode scarcity in the realm of information—making knowledge, translation, and code nearly infinite—the physical world operates under different rules governed by thermodynamics.
Unlike a digital file or a song, which can be copied endlessly, a loaf of bread or a hospital requires physical inputs like materials, factories, transportation, and labor. Achieving true abundance in these areas requires more than just intelligence; it demands advanced robotics to provide the labor and cheap, clean energy to power the entire infrastructure. If these technologies advance sufficiently, basic services like healthcare and education could become nearly free, representing a revolutionary shift for human civilization.
However, technological abundance does not guarantee social equality. A significant risk exists where a small number of corporations or governments own the underlying AI models, chips, data centers, and energy infrastructure. Under these conditions, a lack of resources remains due to restricted distribution by elite entities rather than production failures. Furthermore, even in a world of physical plenty, certain things will likely remain scarce: land, status, trust, attention, meaning, and power.
As machines begin to perform most labor more efficiently than humans, the traditional bargain of selling labor for money breaks down. This shift may necessitate entirely new economic systems, such as universal basic income, public ownership, or citizen dividends. The ultimate question is not whether AI creates abundance—it likely will—but rather who will be allowed to enjoy it.
Opens the Intellect+ feed with this card first. Swipe up for the next one.
Sources
- Summary by Intellect · source: The End of Money? AI's Plan for a Post-Scarcity World
To cite this card, link to https://intellectplus.co.uk/app/science-the-end-of-money-ai-s-plan-for-a-post-scarcity-world.
How we source, check and correct cards: Editorial standards.
General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.
Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?
Related
More in Science · Latest · A–Z · All topics
