Amazon Could Have More Robots Than Employees In Seven Years, Investor Predicts

Ark Invest CEO Cathie Wood forecast that Amazon Could use more robots More than the human race by 2030.

Portfolio manager is the person who manages her portfolio. Invest An analysis of the companies she believes will bring disruptive innovation to the market, based on her decisions. Interview CNBC has learned that Amazon is increasing its automation to a great extent.

“Amazon is adding about 1,000 robots a day,” She made a 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 stated that other firms will adopt automation more quickly 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 continued. “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. Recent stock market rallies led to a 28% rebound for the fund.

According to Amazon’s latest figures, the company employed more than 1.5 million people as of 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 also stated that executives believed increased automation would slow down the crisis.

Amazon actually announced nationwide pay increases at the end last year. The average hourly wage for employees in customer fulfillment or transportation is slated to rise above $19.00 per annum, with employees earning between $16.00/hour and $26.00/hour depending on their job and where they are located in the United States. 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

This is because both public and private sector employers are struggling to fill the positions. According to A.I.M., there are approximately 10.5 million job opportunities and 5.7 millions unemployed people in the economy. Report The Bureau of Labor Statistics shows that a tight labor market has led to higher inflationary pressures, as companies increase their compensation.

Others that rely on unskilled labor also have automated their operations, as the shortage of workers disadvantages employers in the job marketplace. McDonald’s recently Created Texas’s first test restaurant, in which customers can use kiosks to place orders and a mobile application to receive them from a conveyor belt instead of interacting with customer service staff. Tested a robotic tortilla chip maker in a California location.

As federal and state legislators call for higher minimum wage, the higher wages and greater automation are reflected in higher salaries. 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.

Over the past few decades, discussions about technological unemployment have focused on blue-collar workers being replaced by automation. ChatGPT is an artificial intelligence language processing tool which can debug code and write emails in seconds. Some have taken to ChatGPT. Conclusion Many white-collar jobs could also become obsolete.