Economy
Economic disruptions ranging from large impacts on the labor market to broader economic changes that could lead to exacerbated wealth inequality, instability in the financial system, labor exploitation or other economic dimensions.
ENTITY
3 - Other
INTENT
3 - Other
TIMING
2 - Post-deployment
Risk ID
mit1036
Domain lineage
6. Socioeconomic and Environmental
6.2 > Increased inequality and decline in employment quality
Mitigation strategy
1. Mandate and fund **large-scale public-private reskilling and upskilling programs** with coordinated, phased AI adoption strategies. This is critical to bridge the skills gap, mitigate widespread job displacement, and prevent exacerbated wealth inequality resulting from labor market disruption. 2. Establish **binding international governance and contracting frameworks** to oversee AI deployment in global commerce, particularly within developing nations. This measure is necessary to prevent market exploitation, ensure equitable economic benefits, and reduce the systemic risk of an AI-induced economic collapse in vulnerable economies. 3. Implement **proactive fiscal policies** such as reforming or eliminating corporate tax incentives that exclusively favor job-displacing automation. This is a crucial policy lever to encourage corporations to adopt AI as a labor-augmenting technology rather than solely a cost-minimizing substitution for human workers.