Algorithms are fundamental for physical tasks as well. Robotics has been around for many decades, with some infrastructure and the right algos I'm sure it could be tackled, whatever ship breaking is.
What did he mean? I understand his comment as meaning that algorithms can't break ships, but in reality algorithms can be used to control robotics. I stand by my comment, even though algorithms can't melt steel beams
He sounds like he was asking why people don't start working on AI that can "break down ships" (or other industrial labor I guess), but rather work on AI that can mimic artists. He wants to spare people the dangerous and backbreaking work that still exists in the world with the use of AI.
If he said "Robots" or "Machines" I wouldn't mind it but this is another case of a stupid person thinking AI is almighty.