Musk: Universal basic income to be the result of increased automation

Elon Musk, chief executive officer of car-maker Tesla Motors, has predicted that governments will eventually have to pay a universal basic income, in order to offset jobs lost to automation.

Computers and other intelligent machines are increasingly becoming a force in the labour market as companies look to technology as a cheaper alternative to employees.

The founder of Tesla, SolarCity and SpaceX said there will be few options left for governments who will face mass unemployment.

"There is a pretty good chance we end up with a universal basic income, or something like that, due to automation," Musk told CNBC in an interview. "Yeah, I am not sure what else one would do. I think that is what would happen."

Musk added that eventually people will be required to do more complex tasks, and machines will take up the role of performing more monotonous, administrative tasks.

"People will have time to do other things, more complex things, more interesting things," he added.

"Certainly more leisure time. And then we've got to figure out how we integrate with a world and future with advanced AI."

Switzerland flirted with the idea of a UBS earlier this year, but a referendum on the proposal was eventually defeated. The figure quoted was 2,500 Swiss Francs, or $2,578.