Humanoid Robots: A Double-Edged Sword for the Economy

Harrison BrooksThursday, Jan 23, 2025 8:48 am ET
1min read


The global economy is on the cusp of a significant transformation, as humanoid robots, powered by advanced generative AI, are poised to reshape industries and labor markets. While these robots promise increased productivity and efficiency, they also raise concerns about job displacement and income inequality. Nouriel "Dr. Doom" Roubini, a renowned economist, has warned about the potential upheaval that humanoid robots could bring to the economy.

According to a report by Morgan Stanley, the widespread adoption of humanoid robots could lead to significant job displacement and income loss for many workers. By 2050, the U.S. may have 63 million working humanoid robots, potentially affecting 75% of occupations, 40% of employees, and roughly $3 trillion in payroll. This could lead to substantial job displacement and income loss for many workers, particularly in industries with high levels of dangerous, repetitive, or boring tasks, such as transportation and warehousing, construction, manufacturing, agriculture, and mining.

However, the deployment of humanoid robots could also lead to job creation in the maintenance, programming, and management of these robots. According to a 2020 World Economic Forum report, while AI may displace 85 million jobs by 2025, it could also create 97 million new jobs in the same period. The overall impact on wages will depend on the extent of automation, the pace of job creation, and the ability of workers to adapt to new roles.


The introduction of humanoid robots could have mixed effects on consumer prices. On the one hand, increased productivity and efficiency could lead to lower production costs, potentially reducing prices for consumers. On the other hand, if humanoids lead to significant job displacement, there could be downward pressure on wages, which might reduce consumer spending power. Additionally, if humanoids are used to provide services (e.g., healthcare, education), their deployment could increase access and reduce costs for consumers. However, the overall impact on consumer prices will depend on the specific industries and sectors affected, as well as the broader economic context.

In conclusion, the development and deployment of humanoid robots are expected to have a significant influence on the global economy, with potential impacts on productivity, wages, and consumer prices. However, the extent and nature of these impacts will depend on various factors, including the pace of automation, the distribution of new jobs, and the ability of workers and industries to adapt to these changes. Policymakers, businesses, and society must work together to address the potential economic and social implications of humanoid robots and create a more inclusive and equitable future.