Strike or No Strike, AI is still coming for shoremen jobs

Hello, reader.

When I say The Godfather, you probably think of a Marlon Brando getting sick of gangsters threatening to make some poor soul an offer he can’t refuse.

However, as we continue down the Road to AGI, we should probably think of Geoffrey E. Hinton.

On Tuesday, this British-Canadian professor, often called the “Godfather of AI,” won the Nobel Prize in Physics. He won this award together with American professor John J. Hopfield for their groundbreaking research that laid the foundation for modern artificial intelligence.

Since the 1980s, the two men have developed tools from physics to create what we now know as “machine learning.” Machine learning is a type of AI that allows computers to learn and improve. It is used in voice recognition, internet search, factory automation and autonomous vehicles.

Hopfield and Hilton have been at the forefront of AI technology for nearly half a century. But now, the “Godfather of AI” is openly voicing his concerns about the technology. In fact, Hinton worked at Google Brain — one of the company’s deep learning research teams — for a decade before publicly stepping down last year to speak out about the dangers of AI.

“It’s hard to see how you can prevent bad actors from using it for bad things,” he said in an interview with The New York Times in May 2023.

Indeed, AI is both a creativity and destructive force. And among the things AI will destroy are millions of jobs.

We saw one of the effects of this threat just last week, when the International Association of Crackers (INA) went on strike, demanding higher wages… and citing the risk of AI automation.

So, in today’s Smart moneylet’s look at this recent news and the lessons it teaches about the AI ​​Revolution.

Next, we’ll look at one of AI’s most recent beneficial creations—and how to take advantage of it.

Strike!

In short, the ILA had been negotiating with the US Maritime Alliance for a new labor contract. The union, which represents about 45,000 dock workers, was threatening its first major strike since 1977.

At midnight on Tuesday, October 1, negotiations broke down. And the strike has officially begun.

These ports handle about 50% of the goods shipped to and from the US. As a result, three dozen locations in 14 US ports from Maine to Texas were affected, effectively preventing container shipping to and from our Atlantic and Gulf Coast ports.

So this was a big deal.

And besides the desire to boost pay, the biggest catalyst has been tied to job security from AI-powered robotic automation.

Dockers were concerned about port automation and long-term job losses. Harold Daggett, the head of the union that led the strike, said his members were “strongly opposed to any form of automation – full or semi – that replaces jobs or historic job functions”.

In other words, no robots when it comes to loading and unloading goods. These include cranes, gates and moving containers.

However, liquidators reached a temporary end to the strike and returned to work on Friday. Their current contract has been extended until mid-January. After that, they will receive a 61.5% pay rise over the next six years, although they still have to complete the contract to ensure they are protected from automation.

However, the reality is that automation and artificial intelligence are coming, no matter how finely worded the final agreement is. The proverbial horse has left the barn.

Daron Acemoglu, renowned MIT economics professor, estimates that AI will take more than 8.4 million jobs in the US over the next decade.

Advances in automation and AI are inevitable. They will reshape our world in the months and years to come.

So what can we do to prepare?

Embrace the change that AI brings

Embrace change… and invest in it too.

After all, the opportunities AI brings are simply offers we can’t afford to refuse.

Unfortunately, many companies will not adapt. They will become completely obsolete as AI technology reshapes the business landscape.

AI technology will usher in radical changes to society… just as the personal computer, the Internet, and the smartphone did. Only the changes this time will be even faster and more disruptive.

And robotic automation is one of them.

Robots don’t sleep. They don’t take vacations. They never need a break and are more efficient.

So while I wish the shipowners nothing but the best of luck in their negotiations, mine tips for them it’s to train in new AI technologies… and demand higher wages for increased productivity.

The power of this model is not lost on the richest man in the world, Elon Musk.

Tomorrow, October 10, Musk is scheduled to reveal Tesla Inc. (TSLA) “robotaxi”, a fully automated car with no mirrors, no pedals and no steering wheels. This “Cybercab” will rely 100% on AI-powered sensors to find its way.

My fellow InvestorPlace Luke Lango says Musk’s “We, Robot” event will be the tipping point for robotaxis and other AVs to go mainstream in 2025.

Luke is someone you want to pay attention to…

His subscribers have taken advantage of his previous recommendations in recent months.

For example, just from August, Luke’s Early stage investor subscribers locked out:

• 270% earnings on AST SpaceMobile Inc. (AST)
• 50% earnings on Life Time Group Holdings Inc. (LTH)
• 50% earnings on On Holding AG (onOne)
• 120% earnings on Palantir Technologies Inc. (PLTR)
• And 110% earnings further Rocket Lab USA Inc. (RKLB)

A big “congratulations” to Luke’s subscribers. But they don’t go on these turns.

Luke has identified a little-known robotaxi supplier that he believes could play a key role in Tesla’s Cybercab…and make investors a lot of money along the way.

That’s why I encourage you to check out Luke’s investor stream ahead of Musk’s big AI event. You can click here to watch his briefing.

The Robotaxi is set to completely transform transportation – and create an incredible amount of wealth for early-stage investors. I want you to be one of them, and Luke does, too.

Click here for more details in his full video broadcast.

Sincerely,

Eric Fry