Can AI help promote wealth equity?

The White House research report discusses the impact of artificial intelligence (AI) on the economy, acknowledging its potential to increase productivity but warning of potential negative consequences such as wealth inequality and job displacement. The report notes that AI will affect different industries and tasks unevenly, with some jobs being automated away and others becoming more productive. Estimates of job losses vary, with some suggesting up to 47% of U.S. jobs at risk. The report emphasizes the potential impact on lower-skilled and less-educated workers, leading to increased wage inequality. The government proposes three policy responses: investing in and developing AI, educating and training the workforce, and aiding workers in the transition through measures like strengthening the unemployment insurance system.

The article highlights that the excessive emphasis on automating jobs rather than augmenting human capabilities can lead to wage suppression for most workers while amplifying the market power of a few who own and control the technologies. The article presents evidence from economists like Erik Brynjolfsson and Daron Acemoglu, who argue that automation has played a significant role in slowing wage growth and increasing inequality. The article also points out that AI and automation have been concentrated in a few prosperous cities, contributing to geographical disparities in wealth. It underscores the potential for AI to exacerbate inequality and hinder the adoption of transformative technologies. Furthermore, the article suggests that a solution lies in broadening the scope of AI technologies to focus on expanding opportunities in sectors like healthcare, education, and manufacturing rather than solely replacing jobs. It also emphasizes the need for AI researchers to consider the labor market impact of their work and suggests changing benchmarks and narratives to address the labor implications of AI innovations. Overall, the article effectively argues that AI can either worsen wealth inequality or be a tool to address it, depending on how it is developed and deployed. It provides a well-rounded perspective on the issue and highlights the importance of deliberate choices in technology development.