[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 Manufacturing Can Solve This
Korean Skilled Workers Elevated as 'AI Commanders'
Companies Must Share Robot-Generated Profits with Workers and Society
Proactive Adoption of Smart Trust and Sovereign Wealth Fund Models Needed
Government Must Redesign Social Systems for a Laborless Future
Focus on Universal Basic Services like Housing and Healthcare

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

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

In his written responses, he argued that Korea is not simply a country that excels 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 true strength lies not in software, but in the 'embedded substrate'-directly integrating AI at the architectural level of physical systems.

"What is needed for AI to operate in the real world, beyond the digital realm? Memory (semiconductors) to remember, power (batteries) to move, eyes (displays) to see the world, and the manufacturing capabilities to assemble these components with precision. Korea is the only country in the world that can perfectly source and integrate this entire 'hardware stack' within its borders."

Dr. Bezold defined Korea's industrial portfolio-from Samsung Electronics and SK Hynix (semiconductors), LG Energy Solution (batteries), Hyundai Motor (robotics), to Hanwha Ocean (smart ships)-as an "Intelligent Hardware Stack." No matter how advanced the AI models developed by American big tech companies like OpenAI and Google may be, they are useless if the 'embodiment problem'-mass-producing tens of millions of autonomous robots and smart ships without error-cannot be solved. 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 machines. Dr. Bezold identified Korea's skilled manufacturing workers as the 'final piece of the puzzle' in perfecting physical AI. He stated, "The tacit knowledge and data possessed by field workers-such as the ability to judge quality just by the color of a tiny welding spark-are things AI can never imitate," and emphasized, "Korea's physical AI strategy should not be about laying off these workers, but elevating them to the role of 'commander' of AI systems."

If traditional workers operated machines directly, in the era of physical AI, Korean workers will become 'on-site commanders' who interpret data sent by dozens of robots and control exceptional situations. This is a unique competitive advantage that Western countries without a manufacturing base cannot even attempt to replicate. Even as the United States seeks to bring manufacturing such as semiconductors and shipbuilding back home and relies on Korean companies, it will be difficult to operate factories without Korean engineers. The knowledge stored in the hands and minds of Korea's skilled workers is an irreplaceable asset.

He warned against the simplistic notion 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 said that by teaching skilled workers AI prompt engineering and retraining them as high-value data managers, they can take on even more advanced roles.

◇ Companies must earn social approval for physical AI = Dr. Bezold noted that the complete unemployment long imagined in the past now seems to be becoming a reality. The idea that humanity would be liberated from labor by the advancement of AI and robots-complete unemployment-was a concept 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, "Do not view the taxes or profit-sharing that may be introduced as a result of the significant gains from AI adoption as 'punishment'." He argued that the productivity gains generated by physical AI should not be concentrated solely among shareholders. He also suggested that it is necessary to proactively introduce models such as 'smart trusts' or 'sovereign wealth funds' that return a portion of the excess profits generated by robots working 24 hours a day to workers and local communities.

Regarding the role of government, Dr. Bezold said that society's entire system must be 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 argued that basic services (UBS) are needed more than 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 said that when the fear of survival disappears, people can embrace the changes of the AI era without fear. Given Korea's cultural context, he suggested that as jobs disappear, there must be new titles reflecting 'social contribution.'

He proposed establishing official statuses such as 'Industrial Technology Transmission Master' or 'Quality Monitoring Team' for veteran workers. This is not simply about protecting jobs, 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 said, "Korea's Confucian infrastructure can serve as a much stronger and more suitable foundation for the massive AI transition than Western individualism," suggesting solutions that leverage collective identity. He emphasized, "Korea can utilize its 'we' identity, meaning 'just as we built our nation through manufacturing, we will now manage the AI future together.'"

He viewed the younger generation (the N-po Generation) from a completely new perspective. Dr. Bezold defined Korea's youth not as failures, but as "early adopters" who will be the first to embrace the coming era of change.

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