We Are on the Brink of a Technological Revolution

Artificial intelligence is poised to fundamentally reshape the way societies work, economic structures, and global power dynamics. In developing countries — especially those with lower levels of education — this transformation has the potential to disrupt the very foundations of social and economic systems.

The emergence of both physical robots (embodied machines) and non-physical robots (systems that can speak, generate images, compose music, create art, or write code) will radically transform the dynamics of the service industry. This shift may eliminate the need for cheap labor in developed nations, ultimately redefining global economic balances.

The Transformation AI Will Bring to the Service Sector

Artificial intelligence has the potential to fundamentally alter business operations, particularly in the service industry. Until now, developed countries have relied heavily on inexpensive labor from developing regions. However, with the rapid rise of AI technologies, this dependency may decrease significantly.

While embodied robots will replace physical labor, non-physical robots will automate numerous tasks in information-based and service-oriented industries.

Many developing nations have built their economic growth models on the availability of cheap labor, using it as a foothold to enter global markets. Yet with AI, we may face a future in which developed countries no longer require this low-cost workforce.

As non-physical robots take on roles in customer service, software development, and creative industries, significant segments of the labor force in developing countries may face the risk of unemployment.