"AI is Just the Beginning" Professor Choi Jae-boong: The Next Battleground for the 50 Quadrillion Won AI Industry is 'Physical AI'

As massive amounts of capital are being poured into the artificial intelligence (AI) industry, a forecast has emerged that the central axis of the industry will move beyond data centers to 'Physical AI' that combines with the real economy. Professor Choi Jae-boong analyzed the stages of AI technology development and its future economic ripple effects during a conversation with the YouTube channel 'The Man Who Explains the Economy'.

The 50 Quadrillion Won AI Revolution: Moving Beyond Semiconductors to Physical AI

Professor Choi Jae-boong mentioned that humanity has invested approximately 50 quadrillion won into the AI field, explaining that this is essential capital being invested where the future of humanity lies for survival. Based on the changes in the market capitalization of top companies as of 2024, Professor Choi pointed out that AI companies are leading the market flow. In particular, he analyzed that compared to when the total market capitalization of South Korean companies was at the level of 2,500 trillion won in the past, the scale and influence of the funds currently being invested in AI-related companies are enormous.

Regarding the flow of technological development, he predicted a stepwise expansion. Professor Choi forecasted that while investment so far has been focused on building AI data centers, benefiting semiconductor companies including NVIDIA, the next stage will be 'Physical AI'. He explained that once Physical AI becomes full-scale, changes will occur across all industrial sectors, and this will be the core of the 2027 trend.

Industrial Change Predicted Based on Samsung Electronics' 500 Trillion Won Operating Profit

Professor Choi also provided a specific outlook regarding the flow of funds following the construction of AI infrastructure. He explained the process where the funds invested in building data centers are converted into profits and flow into the real economy. Professor Choi expects the operating profit earned by Samsung Electronics and SK hynix to reach at least 500 trillion won, mentioning the possibility that this capital will continuously flow in over the next three years.

He analyzed that such funds will go beyond simple investment and lead to personnel recruitment and infrastructure investment in actual industrial sites. Citing the example of Samsung Electronics allocating budgets to business units such as its robotics division, Professor Choi said this capital will serve as the driving force to hire people and introduce AI across all industrial fields. Consequently, his view is that the capital accumulated during the AI data center stage will spread to Physical AI, leading to continuous global financial input and the influx of private capital.

"AI Has Not Even Started"... A Civilization That Will Become Humanity's New 'Organ'

Regarding the maturity of AI technology, Professor Choi made his position clear, stating, "It is just the beginning." He emphasized that AI has not yet reached the stage of functioning like a part of the human body. Just as the emergence of smartphones created the 'Phono Sapiens' civilization that completely changed the human way of life, he explained that AI will also evolve through the 'AI Agent' stage, assisting humans by their side, into an existence like a part of the body.

Professor Choi mentioned the case where young talents reshaped the market based on technological superiority even after the collapse of the past internet bubble, emphasizing the characteristic that humanity does not stop if technology is judged to be advantageous for survival. He predicted that AI will eventually change the standard civilization of humanity and evolve in a direction that allows humans to do more work with less energy, enabling them to focus on the happiness and pleasure that humans pursue.

Source: original video (YouTube)