[Conditions for Survival, the Physical AI Impact]③Professor Seo Yongseok: "Physical AI Is a Solution to the Demographic Cliff, but the Value of Skill Must Be Preserved"

In a Korea Facing a Demographic Cliff,
Can Physical AI Fill the Labor Gap?
Asking Four Global Scholars and Policy Experts About "The Future of Work"

Editor's NoteThe era of "physical AI," in which artificial intelligence (AI) that once stayed on screens now inhabits robots and performs real-world labor, has arrived. The conflict between technological progress and job insecurity has already become a reality, as seen recently when the Hyundai Motor labor union strongly opposed the introduction of the bipedal robot "Atlas." Is physical AI the end that heralds the disappearance of labor, or is it a step in evolution that will expand humanity's capabilities? The Asia Business Daily asks four global scholars and policy experts, including Stanford University Professor Jerry Kaplan, University of California, Berkeley Professor Ken Goldberg, KAIST Professor Seo Yongseok, and Democratic Party of Korea lawmaker Cha Jiho, about the future of human labor. Over four installments, we explore alternatives and paths to coexistence in an era of technological shock and demographic decline.

In the paradoxical situation of Korean society, where labor shortages and fears of automation coexist, "physical artificial intelligence (Physical AI)," which combines robots and autonomous systems, is emerging as a key solution to the demographic cliff.

Seo Yongseok, a professor at the Munsul Graduate School of Future Strategy at the Korea Advanced Institute of Science and Technology (KAIST), is speaking in an interview with The Asia Business Daily about the future of AI (artificial intelligence) and humanity. Heo Yeonghan, Reporter

Seo Yongseok, head of the Future Strategy Research Center at the Graduate School of Future Strategy at the Korea Advanced Institute of Science and Technology (KAIST), said in a recent interview with The Asia Business Daily that while he defines physical AI as a "technology that changes the game of labor and production," it could also lead to enormous social costs if society becomes trapped in a simplistic logic of worker replacement. Seo defines the future not as a domain of prediction but as an object of "choice and design," and stresses the importance of social consensus preceding the introduction of technology.

Seo said, "If generative AI has put pressure on knowledge work such as writing documents, planning, and analysis, physical AI is entering the realm of labor that uses the body, such as manufacturing, logistics, construction, caregiving, and agriculture," adding, "In a Korea with a shrinking population, this trend may appear less like an option and more like a necessity."

However, Seo warned against the attitude that once robots are introduced, companies can simply lay off skilled workers. He said, "A skilled worker can estimate the temperature just by looking at the color of the flame, and can detect an abnormality just by sensing the vibration and noise of the equipment," adding, "This kind of know-how is not created by a few pages of manuals, but by the accumulation of long years of on-site experience."

He went on to say, "AI can learn from data and come close, but that data is ultimately created in the field," emphasizing, "The final responsibility for safety and quality still lies with humans." He added, "It is easy to cut people, but it is hard to hire them back later," and, "Skill cannot be stockpiled like inventory."

He explained that the future will be closer to a "shift in roles" than to "total replacement." "As AI advances to a stage where it can sense, decide, and act all at once, humans will move from being executors to becoming supervisors, designers, and responsible agents," he said. "On the ground, the role of commanding multiple robots and automated facilities and making judgments in exceptional situations will become more important."

He likened this to being "closer to an orchestra designer." However, he pointed out, "Such roles are not open to everyone," adding, "The number of people needed may decrease. That is why the issue of inequality resurfaces here."

He diagnosed that the shock could spread hierarchically within the labor market. "Hiring people is a fixed cost," he said. "In a society where companies cannot easily lay off existing workers, new hiring is reduced instead. In that case, the first to be hit are young people."

He added, "The job value of women, mid-skilled workers, and then professionals in that order could be shaken." His point is that automation, chosen to compensate for population decline, could lead to another kind of vacuum, namely a vacuum in opportunities and income.

Even so, he clearly identified Korea's strengths in the era of physical AI. "Korea has strong capabilities in manufacturing and hardware," he said. "In fields such as batteries, semiconductors, nuclear power, and shipbuilding, process data and know-how have been accumulated."

He continued, "Korea's strategy is not to simply chase after software," emphasizing, "It is to deeply integrate AI into our manufacturing competitiveness and widen the gap even further." He also said, "If the United States plays the role of the brain, we can play the role of the body," adding, "No matter how good a chef is, he cannot cook without a knife."

However, he drew a line, saying that a technology strategy alone is not enough. "For physical AI to be a solution, control and responsibility must be designed together," he said. He went on, "The direction, value judgments, and ultimate responsibility belong to humans," warning, "If technology alone advances while ethics fails to keep up, it becomes a disaster."

He also noted, "Employment, welfare, and taxation have been designed on the premise of labor," adding, "If labor decreases, that premise is shaken." Regarding basic income and basic services, he said, "This is not a welfare debate but an issue of a new social contract," adding, "We need a consensus on how to share the costs of transition." He emphasized, "We are in a civilizational transition," and, "The key is not technology but social consensus."