Billionaire entrepreneur Elon Musk has predicted that artificial intelligence and humanoid robots will eventually perform most jobs currently done by humans, ushering in an era where governments may have to provide citizens with a universal income.

Speaking during a discussion with XPRIZE founder Peter Diamandis at the Abundance Summit, the Tesla and SpaceX CEO said the rapid advancement of AI and robotics would dramatically increase global productivity, making goods and services more abundant than ever before.

According to Musk, technological progress will reach a point where machines become capable of meeting nearly all human needs, leaving fewer employment opportunities for people.

“AI and robots are going to make so much stuff and provide so many services that they will actually run out of things to do for humans,” he said.

Musk explained that once artificial intelligence begins producing goods and services on a massive scale, economic output could expand far beyond current levels while human demand remains relatively limited.

He argued that such a shift would require a new approach to wealth distribution, suggesting that governments may eventually adopt what he described as a “universal high income” model.

“We’re basically just issuing money to people,” Musk said, adding that future economies could sustain such a system because the supply of goods and services would grow much faster than the money supply.

The tech billionaire maintained that this imbalance would create deflationary pressures, making products and services cheaper over time rather than triggering inflation.

Musk’s latest comments come amid growing global discussions about the impact of artificial intelligence on employment, with experts divided over whether AI will replace existing jobs or create new economic opportunities.

His remarks add to the broader debate over how governments, businesses and workers should prepare for a future increasingly shaped by artificial intelligence and automation.