As our world strides forward with relentless technological progress, it is reshaping the terrain of the global workforce. The emergence of Artificial Intelligence (AI) has ignited a flurry of dialogues and debates about its potential consequences, chiefly its capacity to supplant human labour. Ever since the introduction of AI tools like ChatGPT, discussions about AI’s role in the future of work have taken centre stage in the media and conversations across various platforms. The emergence of AI-driven tools, claiming the ability to replace professionals from doctors to software engineers and artists, has sprouted almost overnight. Given the quality of work these AI systems can produce, it’s no surprise that there’s a palpable apprehension. This then begs the question – what will be the fate of those displaced by AI? How can they maintain a livelihood if their skills become obsolete? Who will bear the tax burden, and what role does the state play in this new world order? This blog seeks to delve into these pressing queries.
The AI Revolution: Where We Stand
To set the stage, let’s consider where AI is already replacing human labour. AI and machine learning technologies have taken root in numerous sectors, transforming traditional business operations. Automated machines in manufacturing, AI-driven chatbots like ChatGPT in customer service, sophisticated algorithms in data analysis, autonomous vehicles in transportation, and AI platforms in healthcare, such as diagnostic and treatment decision tools, are but a few examples.
McKinsey highlights in an article that jobs involving repetitive tasks or predictable patterns are most susceptible to automation. According to the World Economic Forum, by 2025, machines will perform more current work tasks than humans. This does not however discount the jobs created as a result of AI. I have written about this. Check this out.
Economic Implications: Who Pays?
An AI-driven workforce poses several critical questions about our economic future. Who will pay taxes if machines replace human jobs and humans are unemployable? If they are not employed and getting a salary, who will purchase the goods and services produced by AI? What will happen to the high street? What happens to commerce as we know it?
Traditionally, tax revenues primarily derive from human labour. An AI-driven economy might require reconfiguring our taxation system, possibly including ideas like a “robot tax” on companies that use automation to replace human workers. Bernie Sanders and Bill Gates are conjoined with taxing the Robots that take our jobs.
Regarding consumption, if large swathes of the population were unemployed due to AI-driven automation, purchasing power could plummet, impacting economic growth. While all these could spell economic doom, some have proposed the Universal Basic Income (UBI)– an unconditional sum of money as a model to mitigate the risk of revenue losses from automation. These questions will continue to be asked as we witness and experience the AI new world order.
The Role of the State: Guardian or Provider?
As AI potentially displaces a large segment of the workforce, the question of the state’s role comes into sharp focus. Governmental bodies may need to transition from mere regulators to becoming more proactive providers, ensuring their citizens’ fundamental needs are addressed amidst widespread unemployment. Some nations are already trialling Universal Basic Income (UBI) as a possible remedy.
Nevertheless, this shift in state intervention is not without its own complications. Could the guarantee of a UBI inadvertently breed a culture of dependency? Alternatively, could it liberate individuals to engage in more creative or socially advantageous endeavours? Furthermore, there lies the potential hazard of exacerbating the already widening wealth disparity. How will the state address this looming issue? Are we prepared for the social unrest, the protests, and even the potential shift from peaceful demonstrations to more extreme survival tactics by citizens? This paints a vivid picture of yet another facet of the impending AI-driven world order.
Democracy at Risk?
Moreover, the rise of AI could challenge the very foundations of our democratic societies. The central premise of democracy is political equality, the notion that wealth does not determine one’s political influence. But as AI and automation potentially exacerbate income inequality, this principle could come under threat.
The rise of AI, therefore, is not just a technological shift but a societal one. It calls for a fundamental rethinking of our social contract, of how wealth and opportunities are distributed in our societies, and how we ensure political equality in the face of rapidly growing economic disparities.
Concluding Thoughts
AI’s potential to replace human labour poses significant questions for our economies, societies, and political structures. As we have explored, the implications are multi-faceted and complex. Our current societal and economic structures may need to evolve to accommodate this new reality.
While the future of AI and automation is uncertain, what is clear is that we need to engage with these questions now. To navigate this transition successfully, we must be proactive in our thinking and planning, grounded in a deep understanding of the potential challenges and opportunities of the AI revolution.
