NY lawmaker proposes ‘AI dividend’ to address potential job losses

The proposed AI dividend would be funded by taxes on AI use and equity stakes in AI companies, paying US citizens if automation meaningfully displaces workers.

A New York state assemblymember and congressional candidate has proposed an artificial intelligence dividend program for US citizens to address potential job losses stemming from advances in AI technology.

In an X post on Sunday, New York lawmaker Alex Bores outlined a plan to prepare the US and its citizens for the "potential large-scale displacement of human labor by artificial intelligence."

"Today, I'm proud to announce the AI Dividend, my plan to prepare for the AI economy with direct payments to Americans funded by tax reform that simultaneously incentivizes hiring humans instead of AI," he said.

Bores' move comes amid growing concerns that AI could eventually drive mass unemployment. According to a recent Goldman Sachs report, AI adoption has resulted in the loss of about 16,000 jobs per month over the past year.

The proposed program would be funded through avenues such as a tax on AI use, equity stakes in leading AI companies, and tax reforms to the "treatment of labor and capital."

Bores is currently touting the policy as part of his run for a seat in Congress, and its progress in getting off the ground may be dependent on the success of his campaign. 

Alongside paying dividends to US citizens, the funds would also go toward investments in "workforce transition, training and education" and establishing oversight and safety infrastructure.

Related: One year under Paul Atkins, SEC's crypto stance shows break with past

"At its core, the AI Dividend is simple: if AI dramatically increases productivity and concentrates wealth, the American people have a stake in those gains,” the dividend plan read. 

High-profile US tech giants such as Amazon, Meta, Intel and Microsoft have either already laid off thousands of workers or have reportedly planned to, due to efficiencies created by AI.  

However, global investment banking firm Morgan Stanley released a report on April 14 on AI job displacement, noting that the impact on the labor market has been "modest so far."

Morgan Stanley argued that there has been limited evidence of widespread job losses and that, historically, new waves of technology can help expand employment over time, even as they displace some roles. It did, however, acknowledge that AI could defy this historical precedent.

Magazine: Will the CLARITY Act be good — or bad — for DeFi?

Source: CoinTelegraph