Elon Musk says govt not able to keep up with AI, wants Trump to distribute free money to people

Elon Musk says governments is struggling to keep pace with rapidly advancing AI, calling them "very slow moving" compared to the technology's growth. He suggests direct cash handouts could be one way to deal with the disruption.

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Elon Musk says govt not able to keep up with AI, wants Trump to distribute free money to people (Photo: Reuters)

In a wide-ranging conversation with Peter H. Diamandis, Elon Musk painted a fast-moving picture of the future created by AI, where governments may struggle to respond to the pace of change. Speaking about everything from advanced AI systems to humanoid robots, Musk suggested that the traditional structures of governance are too slow to adapt, and in such a scenario, direct financial support to citizens could become one of the few practical tools left.

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Musk's remarks come at a time when discussions around AI's impact on jobs and economies are picking up pace globally. While he acknowledged the complexity of such decisions, his comments pointed to a future where economic disruption caused by AI could force governments to rethink how they support people.

Govt not keeping pace with AI disruption: Elon Musk

During the discussion, Musk revealed that he does not believe the US government can match the speed at which AI is evolving. According to him, the gap is not small as AI development is moving "10 times faster than government, maybe more," making it extremely difficult for regulatory systems to react in real time.

He argued that policymaking, by design, is slow and layered, whereas AI development is driven by rapid iteration and exponential growth. In such a mismatch, governments may find themselves constantly reacting rather than shaping outcomes.

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"The rate of change can only be managed with AI assistance," Dave Blundin, founder & GP of Link Ventures, said in the same interview, adding that no government entity is currently equipped to keep up with that pace. As a result, he suggested that traditional interventions such as regulation may fall short in addressing the broader economic and societal changes brought on by AI.

Instead, Musk suggested a simpler, albeit controversial, approach — the government "could just issue people free money" as a way to maintain stability. He referred to past instances of direct payments, like COVID-era stimulus checks and a payout of $1,776 to US military personnel under Donald Trump, suggesting that such measures are already being tried in different forms.

However, he also acknowledged the complexity behind such a system, including questions around how much money should be distributed and to whom. Despite that, Musk maintained that sending direct payments could become one of the few viable responses in a rapidly changing AI-driven world.

AI to change jobs, healthcare and beyond, Musk suggests

Beyond governance, Musk also spoke about the transformative potential of AI across industries, particularly healthcare. He talked about the current shortage of skilled doctors and surgeons, noting that becoming a top medical professional takes years of training and is both expensive and time-consuming.

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In contrast, Musk predicted that AI-powered humanoid robots, including Tesla’s Optimus, could reach a level where they outperform even the best human surgeons within about three years. Once deployed at scale, such systems could dramatically increase access to high-quality medical care across the world, including in underserved regions.

He explained that the rapid progress in robotics is being driven by multiple exponential trends — improvements in AI software, advancements in chip performance, and increasing mechanical precision. When combined, these factors could accelerate development far beyond what is typically seen in human-led industries.

Musk also touched on how AI systems themselves will evolve. Rather than a single dominant intelligence, he suggested there will likely be multiple AI systems operating simultaneously due to physical constraints like the speed of light, which limits how quickly information can travel across large distances. This, he said, makes the idea of one all-controlling AI less practical, with future systems instead forming a network of distributed intelligence.

- Ends
Published By:
Ankita Garg
Published On:
Apr 7, 2026 16:32 IST

In a wide-ranging conversation with Peter H. Diamandis, Elon Musk painted a fast-moving picture of the future created by AI, where governments may struggle to respond to the pace of change. Speaking about everything from advanced AI systems to humanoid robots, Musk suggested that the traditional structures of governance are too slow to adapt, and in such a scenario, direct financial support to citizens could become one of the few practical tools left.

Musk's remarks come at a time when discussions around AI's impact on jobs and economies are picking up pace globally. While he acknowledged the complexity of such decisions, his comments pointed to a future where economic disruption caused by AI could force governments to rethink how they support people.

Govt not keeping pace with AI disruption: Elon Musk

During the discussion, Musk revealed that he does not believe the US government can match the speed at which AI is evolving. According to him, the gap is not small as AI development is moving "10 times faster than government, maybe more," making it extremely difficult for regulatory systems to react in real time.

He argued that policymaking, by design, is slow and layered, whereas AI development is driven by rapid iteration and exponential growth. In such a mismatch, governments may find themselves constantly reacting rather than shaping outcomes.

"The rate of change can only be managed with AI assistance," Dave Blundin, founder & GP of Link Ventures, said in the same interview, adding that no government entity is currently equipped to keep up with that pace. As a result, he suggested that traditional interventions such as regulation may fall short in addressing the broader economic and societal changes brought on by AI.

Instead, Musk suggested a simpler, albeit controversial, approach — the government "could just issue people free money" as a way to maintain stability. He referred to past instances of direct payments, like COVID-era stimulus checks and a payout of $1,776 to US military personnel under Donald Trump, suggesting that such measures are already being tried in different forms.

However, he also acknowledged the complexity behind such a system, including questions around how much money should be distributed and to whom. Despite that, Musk maintained that sending direct payments could become one of the few viable responses in a rapidly changing AI-driven world.

AI to change jobs, healthcare and beyond, Musk suggests

Beyond governance, Musk also spoke about the transformative potential of AI across industries, particularly healthcare. He talked about the current shortage of skilled doctors and surgeons, noting that becoming a top medical professional takes years of training and is both expensive and time-consuming.

In contrast, Musk predicted that AI-powered humanoid robots, including Tesla’s Optimus, could reach a level where they outperform even the best human surgeons within about three years. Once deployed at scale, such systems could dramatically increase access to high-quality medical care across the world, including in underserved regions.

He explained that the rapid progress in robotics is being driven by multiple exponential trends — improvements in AI software, advancements in chip performance, and increasing mechanical precision. When combined, these factors could accelerate development far beyond what is typically seen in human-led industries.

Musk also touched on how AI systems themselves will evolve. Rather than a single dominant intelligence, he suggested there will likely be multiple AI systems operating simultaneously due to physical constraints like the speed of light, which limits how quickly information can travel across large distances. This, he said, makes the idea of one all-controlling AI less practical, with future systems instead forming a network of distributed intelligence.

- Ends
Published By:
Ankita Garg
Published On:
Apr 7, 2026 16:32 IST

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