[AI Era, Jobs Are Changing] "Don't Chase Software... Korea's Manufacturing Power Is a Major Weapon, Will Dominate the World of Physical AI"

Interview with World-Renowned Futurist Dr. Bezold
The 'Embodiment' Challenge: Making AI Work in the Real World
Even Advanced AI Models by US Big Tech
Require Flawless Mass Production of Robots and Smart Ships
Only Korea's Precision Manufacturi

"The United States' Silicon Valley may hold dominance in AI software, but the country that will lead the world of 'Physical AI' is Korea."

Dr. Clement Bezold, a renowned futurist, predicted in a New Year's interview with The Asia Business Daily that the transformation of manufacturing driven by the advent of the artificial intelligence (AI) era will present a significant opportunity for Korea.

In his written responses, he emphasized that Korea is not just a country adept at producing semiconductors, but the only advanced civilization capable of 'embodying' AI in the real world. He also outlined the tasks that companies and the government must tackle to realize the coexistence of humans and AI.

Dr. Clement Vizold

◇ The 'brain' is in the US, the 'body' is in Korea = Dr. Bezold pointed out that a strategic mistake Korea must avoid is "chasing after American-style software AI." He asserted that Korea's real strength lies not in software, but in the 'embedded substrate'-the direct integration of AI at the architectural level of physical systems.

"What does it take for AI to operate in the real world beyond the digital space? It requires memory semiconductors, power to move (batteries), eyes to see the world (displays), and the manufacturing capability to assemble these components with precision. Korea is the only country in the world that can perfectly source and integrate this entire 'hardware stack' domestically."

Dr. Bezold defined Korea's industrial portfolio-spanning Samsung Electronics and SK Hynix (semiconductors), LG Energy Solution (batteries), Hyundai Motor Company (robotics), and Hanwha Ocean (smart ships)-as an 'Intelligent Hardware Stack.' He noted that no matter how advanced the AI models developed by American big tech firms like OpenAI and Google may be, they are useless if they cannot solve the 'embodiment problem'-the ability to mass-produce tens of millions of autonomous robots and smart ships without error. According to Dr. Bezold, Korea holds the key to overcoming this bottleneck.

◇ Skilled manufacturing workers are the conductors of AI = The core of physical AI is not just about machines. Dr. Bezold identified skilled workers on Korea's manufacturing floors as the 'final puzzle piece' for completing physical AI. "The tacit knowledge and data possessed by field workers-such as the ability to judge quality by the subtle color of a welding spark-are things AI can never replicate," he said, emphasizing that "Korea's physical AI strategy should not be about laying off these workers, but elevating them to the role of 'Commanders' of AI systems."

Whereas traditional workers operated machines directly, in the era of physical AI, Korean workers will become 'field commanders' who interpret data from dozens of robots and control exceptional situations. This is a differentiated competitive advantage unique to Korea-one that Western countries lacking a manufacturing base cannot even attempt. Even if the US tries to bring manufacturing such as semiconductors and shipbuilding back home by enlisting Korean companies, without Korean engineers, it would be difficult to operate the factories-the same situation will arise in the realm of physical AI. The information stored in the hands and minds of Korea's skilled workers is an invaluable asset that cannot be replaced.

He warned against the one-dimensional thinking that "companies replace people with machines." Instead, he stressed the need to consider "how to utilize the intelligence of humans once machines have taken over physical labor." He suggested that by training skilled workers in AI prompt engineering and transforming them into high-value data managers, they can take on even more advanced roles.

◇ Companies must earn social permission for physical AI = Dr. Bezold stated that what was once imagined as complete unemployment now seems to be becoming reality. The idea of total unemployment-where humanity is freed from labor thanks to advances in AI and robotics-was proposed by Professor Jim Dator of the University of Hawaii, who co-founded the Institute for Alternative Futures (IAF) with Dr. Bezold and Alvin Toffler.

Dr. Bezold advised business leaders not to view taxes or profit-sharing arising from the adoption of AI as a 'punishment.' He argued that the productivity gains generated by physical AI should not be concentrated solely among shareholders. He also suggested that models such as 'smart trusts' or 'sovereign wealth funds,' which proactively redistribute a portion of the excess profits generated by robots working 24/7 to workers and local communities, should be introduced.

Regarding the role of government, Dr. Bezold said that society's systems must be completely redesigned to prepare for the 'laborless future' that physical AI will bring. He emphasized that "protecting human dignity is more important than simply distributing cash." He advocated for universal basic services (UBS) rather than universal basic income (UBI), advising a focus on expanding 'universal basic services' that provide essential elements of life-such as housing, healthcare, education, and transportation-free of charge. He argued that when the fear of survival disappears, people will be able to embrace the changes of the AI era without anxiety. Given Korea's cultural context, he noted that as jobs disappear, a new identity of 'social contribution' will be needed.

He proposed the creation of official roles such as 'Industrial Technology Transmission Master' or 'Quality Monitoring Team' for veteran workers. This is not simply about job protection, but about elevating their experience to a technical supervisory function and maintaining social dignity through a process of 'recognition replacement.'

He also offered a different perspective on Korean society. Dr. Bezold suggested that Korea's Confucian infrastructure could serve as a far more suitable and powerful foundation for the coming era of AI transformation than Western individualism, proposing solutions that leverage collective identity. He emphasized, "Just as Korea built the nation through manufacturing, it can now manage the AI future together by utilizing the 'we' identity."

He viewed the younger generation (the 'N-po Generation') from a completely new perspective. Dr. Bezold defined Korean youth not as failures, but as 'early adopters' who will be the first to embrace the changing times.

▲ Who is Dr. Clement Bezold? = Together with Alvin Toffler, author of "The Third Wave," and Professor Jim Dator, the founding father of futures studies at the University of Hawaii, Dr. Bezold co-founded the Institute for Alternative Futures (IAF) in 1977. He established the 'Aspirational Futures' methodology, which goes beyond vague predictions to design the futures organizations desire. For over 40 years, he has served as a strategic advisor to the White House, the World Health Organization (WHO), and Fortune 500 companies, and is recognized as a pioneer of 'Foresight Leadership,' which guides humanity and organizations toward optimal paths amid uncertainty through scenario planning. He is a recipient of the 12th KAIST Future Strategy Award.