Investor Predicts Amazon Could Have More Robots Than Employees in Seven Years

Ark Invest CEO Cathie Wood predicts that Amazon Could use more Robots By 2030, more than people.

The portfolio manager, who is responsible for her Investment She noted that decisions made based on companies that she believes will bring disruptive innovations to the market were made during an interview Interview CNBC reports that Amazon is increasing automation to an incredible extent.

“Amazon is adding about 1,000 robots a day,” She made the comment. “If you compare the number of robots Amazon has to the number of employees, it’s about a third. And we believe that by the year 2030 Amazon can have more robots than employees.”

Wood pointed out that automation will be adopted faster by other companies due to its cost benefits. “We are just at the dawn of the robotics age. And I would say artificial intelligence and battery technology are all a part of that movement as well,” She went on. “For every cumulative doubling in the number of robots produced, the cost declines are in the 50% to 60% range.”

Wood has been criticised for her Ark Innovation ETF which invests in disruptive businesses involved with sectors like artificial intelligence, robotics and genomic research. It is 70% lower than its peak of nearly two years ago. After technology companies gained on the stock exchange, the fund rebounded by nearly 28%.

According to Amazon’s most recent figures, more than 1.6 Million Amazon employees were employed at the end 2021. Annual Report. This company places emphasis on worker productivity and high turnover rates in fulfillment centers and warehouses across the country. According to internal leaks, Amazon forecast that there would be no Americans to hire by the end of next year. Research Vox obtained the following information. Executives believe that increased automation and higher wages can slow down the crisis.

Amazon did indeed announce nationwide pay increases towards the end of last years: Average hourly wages for employees in customer satisfaction and transportation will rise above $19.00 an hour. Employees earning between $16.00 and $26.00 an hour depending on their location in the United States are slated to earn between $16.00 and $26.00, according to a Press release. Walmart unveiled Similar wage increases were made last month, so that the average hourly pay of employees in the country will now exceed $17.50

As both private and public sector workers struggle to fill vacant positions, this phenomenon is common. According to A.I.M., there are approximately 10.5 million job opportunities and 5.7 millions unemployed people in the economy. Report According to the Bureau of Labor Statistics this reflects a constrained labor force that has increased compensation while increasing inflationary pressures.

As the labor shortages affect employers, other companies that depend on unskilled labor are also automating their operations. McDonald’s recently Created A Texas test restaurant where customers can use kiosks or a mobile app to order from conveyor belts rather than interact with staff. Tested a robotic tortilla chip maker in a California location.

While the federal and state legislatures are calling for higher minimum wages, higher salaries and more automation result in higher wages. Amazon supported recent proposals. raise Some commentators note that Amazon would likely be able to raise the national minimum wage to $15.00 an hour.

The topic of technological unemployment has been discussed for decades. It has been about blue-collar workers losing jobs to automation. ChatGPT, an artificial Intelligence language processing tool that can write emails and debug code in just seconds, is being widely adopted by some. Final conclusion It is possible that white-collar occupations may also be eliminated.

*As an Amazon Associate I earn from qualifying purchases