[Economy Pulse] Beyond Fear and Resistance: Time to Prepare for Coexistence with AI

Seokcheol Hong, Professor of Economics at Seoul National University

The era in which robots equipped with artificial intelligence (AI) are deployed on production lines and assist with household chores is fast approaching. As Hyundai Motor Company and Tesla accelerate their competition in humanoid robotics, there is growing interest in how AI will transform human society. Robots can work tirelessly 24 hours a day at significantly lower costs, so the emergence of advanced robots capable of replacing human labor, which is limited in productivity, is expected to bring about a true industrial revolution.

However, as vague concerns about robots replacing human jobs become a reality, resistance to the adoption of new technologies is also mounting. Recently, the Hyundai Motor labor union declared that robots cannot be introduced to production sites without labor-management agreement. This mirrors the Luddite movement of the early 19th century in Britain, when textile workers, fearing job losses from the introduction of innovative spinning machines during the First Industrial Revolution, destroyed machinery and resisted change-a phenomenon now being replayed in the 21st century.

Expectations and resistance surrounding AI are being observed not only on manufacturing floors but also throughout society and the economy. Another example is the medical field. Not long ago, Elon Musk claimed that humanoid robots would replace doctors within three years, making medical school admission meaningless. Coincidentally, demand for medical school admission in Korea is at its peak, and with heated social conflict over next year’s medical school quota adjustments, Musk’s remarks have fueled debate over whether expanding medical school enrollment is appropriate in the AI era. In the medical community, AI has been invoked as a reason to block increases in medical school admissions, yet this same community, which has long opposed even telemedicine, is unlikely to readily accept humanoid robots-far more advanced than telemedicine-replacing doctors' work.

Korea’s high expectations for AI are closely linked to its rapidly declining population. The working-age population, which has been a key driver of economic growth, is expected to decrease by about 3.3 million within the next 10 years and by about 10 million in 20 years. Currently, the labor shortage is being offset by foreign workers, but the era of employing foreign labor at low wages will soon end, and demand for cost-effective robots will surge. Furthermore, the population aged 75 and older, who have high medical needs, is expected to nearly triple from 4.3 million today to 11.5 million by 2050. Without introducing telemedicine or digital healthcare services, it will be difficult for the current face-to-face, hospital- and doctor-centered system to cope with the rapidly growing medical demand. If our society fails to embrace innovative technologies, most of the social costs-such as low growth and high inflation due to rising production costs, as well as increased medical expenses-will ultimately fall on individuals.

In response to the Hyundai Motor labor union’s declaration, the President stated that one cannot avoid the oncoming juggernaut and must adapt quickly to society. However, for society to adapt, it too must change. First, employment and welfare policies must be improved to support those facing job loss due to AI adoption. Without such preparation, resistance to AI will persist. Second, regulatory frameworks must be made more flexible so that AI can be effectively utilized where needed. Robots and AI cannot thrive under outdated laws and systems. Third, rather than vague investments in AI, we must increase investments aimed at solving the pressing problems facing our economy and society. AI investments that the public cannot feel directly will struggle to gain support. Lastly, education must be reformed to foster creative talent that cannot be replaced by AI. It is now time to move beyond fear and resistance and prepare for coexistence with AI.

Seokcheol Hong, Professor of Economics at Seoul National University

This content was produced with the assistance of AI translation services.