The AI revolution will almost surely lead to an increase in income disparities. To ensure that the emerging technology does not widen the wealth gap, governments must reform the tax system so that rates for high earners increase automatically once an inequality threshold has been breached.
NEW HAVEN – European Union lawmakers recently reached a provisional agreement on a landmark regulation to mitigate the risks that artificial intelligence poses to humanity, and other countries seem ready to follow the EU’s lead. But this regulation does not address one of the greatest disasters AI may bring – the prospect of mass unemployment and sharply increased income inequality. Regulation cannot eliminate these risks without precluding the world from enjoying AI’s potential benefits, namely dramatic increases in productivity and enormous wealth creation. That is why policymakers must also enact policies to compensate citizens if these disasters occur.
NEW HAVEN – European Union lawmakers recently reached a provisional agreement on a landmark regulation to mitigate the risks that artificial intelligence poses to humanity, and other countries seem ready to follow the EU’s lead. But this regulation does not address one of the greatest disasters AI may bring – the prospect of mass unemployment and sharply increased income inequality. Regulation cannot eliminate these risks without precluding the world from enjoying AI’s potential benefits, namely dramatic increases in productivity and enormous wealth creation. That is why policymakers must also enact policies to compensate citizens if these disasters occur.