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Weve got over 8,000 mutual funds and not one of them has our name on it. Why . Because thats not the business were in. Were in the business of finding the right investments for you. Etrade. Less for us. More for you. Kroft one of the hallmarks of the 21st century is that we are all having more and more interactions with machines and fewer with human beings. If youve lost your white collar job to downsizing, or to a worker in india or china, youre most likely a victim of what economists have called technological unemployment. There is a lot of it going around, with more to come. At the vanguard of this new wave of automation is the field of robotics. Everyone has a different idea of what a robot is and what they look like, but the broad universal definition is a machine that can perform the job of a human. They can be mobile or stationary, hardware or software, and they are marching out of the realm of Science Fiction and into the mainstream. The age of robots has been anticipated since the beginning of the last century. Fritz lang fantasized about it in his 1927 film, metropolis. In the 1940s and 50s, robots were often portrayed as household help. May i take your hat and coat . Kroft and by the time the Star Wars Trilogy arrived, robots, with their computerized brains and nerve systems, had been fully integrated into our imagination. Now theyre finally here, but instead of serving us, we find them competing for our jobs; and according to m. I. T. Professors Erik Brynjolfsson and Andrew Mcafee, one of the reasons for the jobless recovery. Andrew mcafee our economy is bigger than it was before the start of the great recession. Corporate profits are back. Business investment in hardware and software is back higher than its ever been. Whats not back is the jobs. Kroft and you think technology and increased automation is a factor in that . Erik brynjolfsson absolutely. Kroft the percentage of americans with jobs is at a 20 year low. Just a few years ago, if you traveled by air, you would have interacted with a human ticket agent. Today, those jobs are being replaced by robotic kiosks. Bank tellers have given way to atms, sales clerks are surrendering to ecommerce. Im an automated system. Kroft . And switchboard operators and secretaries to Voice Recognition technology. Brynjolfsson there are lots of examples of routine, middle skilled jobs that involve relatively structured tasks, and those are the jobs that are being eliminated the fastest. Those kinds of jobs are easier for our friends in the Artificial Intelligence community to design robots to handle them. They could be software robots, they could be physical robots. Kroft what is there out there that people would be surprised to learn about in the robotics area, lets say. Mcafee there are heavily automated warehouses where there are either very few or no people around. That absolutely took me by surprise. Kroft its on display at this Huge Distribution Center in devens, massachusetts, where roughly 100 employees work alongside 69 robots that do all the heavy lifting, and navigate a warehouse maze the size of two football fields, moving 10,000 pieces of merchandise a day from storage shelf to Shipping Point faster and more efficiently than human workers ever could. Bruce welty we think its part of the new american economy. Kroft bruce welty is c. E. O. Of quiet logistics, which fills orders and ships merchandise for retailers in the apparel industry. This entire operation was designed around the small orange robots made by a company outside boston called kiva, and can now be found in warehouses all over the country. Now, this is the order that shes is filling right on this screen. Welty yes. In a typical warehouse, shed have to walk from location to location with a number of totes, and thats the innovation here is that the product comes to her. Kroft and all of this is preprogrammed . Nobody has to sit there and tell these robots where to go . Welty no, no, its all done with algorithms. A lot of mathematics, a lot of science that went into this. Kroft customer orders are transmitted from a computer to wifi antennas that direct the robots to the merchandise, guiding them across an electronic checkerboard with bar codes embedded in the floor panels. Once the robot arrives at its destination, it picks up an entire shelf of merchandise and delivers it to the packing station. It then speeds off to its next assignment. Welty they know if they need to get from point a to point b and they are not carrying anything, they can go underneath the grid. We call that tunneling. So they are very smart. Kroft youd think theyd run into each other. Welty yeah, youd think that but it never happens. Kroft if you had to replace the robots with people, how many people would you have to hire . Welty probably one and a half people for every robot. Kroft so it saves you a lot of money . Welty yes. Kroft and its not just going on in warehouses. El camino hospital in californias Silicon Valley has a fleet of robots called tugs that ferry meals to patients, medicines to doctors and nurses, blood samples to the lab, and dirty linen to the laundry. Crossing hallway. Kroft a hospital spokesman told us the tugs are supposed to supplement nurses and hospital staff, not replace them. But he also believes that robots and humans working together is the beginning of a new era. Robots are now wielding scalpels for surgeons, assisting in the most delicate operations, allowing them to see and snip their way through prostate surgeries with minimal damage. And they have begun filling prescriptions in hospital dispensaries and local pharmacies. Economic evolution has been going on for centuries, and society has always successfully adapted to technological change, creating more jobs in the process. But Erik Brynjolfsson and Andrew Mcafee of m. I. T. Think this time may be different. Brynjolfsson technology is always creating jobs, always destroying jobs. But right now, the pace is accelerating. Its faster, we think, than ever before in history. So as a consequence, we are not creating jobs at the same pace that we need to. Mcafee and we aint seen nothing yet. Kroft the changes are coming so quickly, its been difficult for workers to retrain themselves and for entrepreneurs to figure out where the next opportunities may be. The catalyst is something called computer learning or Artificial Intelligence the ability to feed massive amounts of data into supercomputers and program them to teach themselves and improve their performance. Siri whats the weather like today . Kroft its how apple was able to create siri, the iphone robot. Siri heres the weather for today. Kroft . And google its selfdriving car. Brynjolfsson weve been amazed at how rapidly this has been happening. This is jeopardy brynjolfsson ibms deep qa system that plays jeopardy, we had a contest here that played against our best m. I. T. Students, the best Harvard Students we could put it up against. And not surprisingly, watson won. And its being used in real, Practical Applications now on wall street and in call centers. Siri millions of people are using that every day. Mcafee the fact that computers can now understand and respond to human speech, the fact that they can actually generate prose of decent quality, they can drive cars, they can win at jeopardy were seeing Technology Demonstrate skills that its never, ever done before. Kroft and it is putting new categories of jobs in the sites of automation the 60 of the workforce that makes its living gathering and analyzing information. This piece of software, called ediscovery, is now used by law firms in the discovery portion of legal proceedings, a job that used to require hundreds of people sifting through boxes and boxes of documents. We now have robots gathering intelligence and fighting wars, and Robot Computers trading stocks on wall street. Its all part of a massive high Tech Industry thats contributed enormous productivity and wealth to the american economy, but surprisingly little in the way of employment. Mcafee we absolutely are creating new jobs, new companies, and entirely new industries these days. When. When erik and i go out to Silicon Valley and look around, the scale and the pace of creation is astonishing. What these companies are not doing, though, is hiring a ton of people to help them with their work. Kroft because they dont have them . Because they cant find them . Because they dont need them . Mcafee because they. They cant. They cant find everyone they need, but they dont need that many people to work in these incredibly large and influential companies. To make that concrete, apple, amazon, facebook and google are now all public companies. Combined, they have something close to 1 trillion in market capitalization. Together, the four of them employ fewer than 150,000 people, and thats less than the number of new entrants into the American Workforce every month. Kroft and its roughly half the number of people that work for general electric. Ironically, one of the few bright spots is a modest rise in u. S. Manufacturing, an early casualty of automation that is making a comeback because of it. This tesla factory in california turns out batterypowered cars, using stateoftheart robots that can change tools and perform a multitude of different tasks, negating some of the advantages of moving jobs offshore. Annual investment by u. S. Manufacturers in new technology has increased almost 30 since the recession ended, and Research Institutions and Robotics Companies, funded by venture capital, are constantly searching for innovations, like the roomba vacuum cleaner. Rodney brooks traditional robots inside factories. Kroft that was the brainchild of rodney brooks, a pioneer who ran the Artificial Intelligence lab at m. I. T. Before launching irobot, one of the most successful Robotics Companies in the u. S. This is his latest progeny, a friendly, affordable chap named baxter. Brooks its meant to be able to go in a factory where they dont have robots at the moment, and ordinary workers can train it to do simple tasks. Kroft uhhuh. Such as . Brooks well, a simple one is just, for instance, picking stuff up off a conveyor belt. So its going to go down and find. Find the object and grab it and bring it over and put it to another spot. Kroft baxter costs 22,000, and can be trained to do a new task by a coworker in a matter of minutes. It can also be upgraded like an ipad with new software as new applications are developed. Brooks and when youre training it. Kroft brooks and investors in his new startup, rethink robotics, see a potential market worth tens of billions of dollars, and believe that baxter can help small u. S. Manufacturers level the Playing Field against lowcost foreign competitors. Brooks if youre using robots to compete with a simple task that a lowpaid worker does in a foreign country, you can bring it back here and do that task here. Kroft baxter costs 22 grand . Brooks yep. Kroft how long does he last . Brooks it lasts three years. Kroft three years . Brooks so you can think that as 6,500 hours. Kroft i think it works out to about 3. 40 an hour . Brooks about that, yeah. Kroft right, 3. 40, thats probably the wages of the chinese worker, right . Brooks its just about right there now. Kroft so here you could buy one of these robots and it would be like getting a chinese worker . Brooks in. In a manner of speaking. Kroft that strategy has already had some success at adept technology, the largest manufacturer of industrial robots in the country, with a wide and varied product line. John dulchinos is the c. E. O. John dulchinos so this is our flagship product. This is our cobra robot. This is the class of robot that was used to automate philips electric shavers. Kroft the robots at the dutch companys factory in the netherlands proved to be so efficient and economical that philips decided to move its main shaver Assembly Line out of china and back to holland. Brynjolfsson i think that those workers in china, in india, are more in the bulls eye of this automation tidal wave that we are talking about than the american workers. Kroft but even if offshore manufacturing returns to the u. S. , most of the jobs will go to robots. Mcafee when i see what computers and robots can do right now, i project that forward for two, three more generations, i think were going to find ourselves in a world where the work, as we currently think about it, is largely done by machines. Kroft and what are the people going to do . Mcafee thats the 64,000 question. Science fiction is actually my best guide, because i think we are. In that time frame, going to be in a very weird, very different place. Kroft it brings to mind Stanley Kubricks 2001 a space odyssey and the rebellious computer robot, hal. Technologically speaking, we are just about there. Open the pod bay doors, hal. Hal im sorry, dave. This mission is too important for me to allow you to jeopardize it. Kroft everyone agrees that its impossible now to short circuit technology. It has a life of its own, and the world is all in, for better or for worse. Hal stop, dave. Kroft we wanted to leave you on this positive note. Brynjolfsson one thing that andy and i agree on is that were not super worried about robots becoming self aware and challenging our authority. That part of Science Fiction, i think, is not very likely to happen. Cbs money watch update sponsored by good evening. Oracle says the government warned of a serious hacking risk. The u. S. Treasury will not mint a trillion dollar coin to avoid the debt ceiling. And chevy rolled out a new corvette, hoping to reinvigorate the brand. Im jeff glor. Cbs news. Pelley interviews with Supreme Court justices are rare, but tonight, even more so because, in 223 years, there has never been a justice like Sonia Sotomayor. Among other things, shes the first hispanic on the court. Shes the daughter of puerto rican immigrants who settled in the bronx, that new york melting pot that pours out streetwise kids and american success stories. Sotomayor, now 58 years old, calls the streets of her childhood my beloved world, and thats the name of her new memoir. In her first broadcast interview, she told us that the neighborhood gave a poor girl with a serious illness a chance to serve and an opportunity to become one of the most powerful women in america. This is where you grew up . Sonia sotomayor in a Public Housing project. I lived in this one on the corner. Hold on. Hola. ¿como estas . Welcome to your old neighborhood. Sotomayor gracias. Kroft you could believe she never left. They remember and shes never forgotten. Seems the only difference is the security detail, which she really never needed in the bronx. You know, your brother told us that, more than once in this neighborhood, he got beaten up. Sotomayor yep. And more than once, i beat up the person who beat him up. laughter pelley you stood up for your brother. Sotomayor oh, you asked me the other day if i was a tough cookie and. Pelley a tough cookie who never crumbled at a setback. Sotomayor i am the most obstinate person you will ever meet. I have a streak of stubbornness in me that i think is