Labor displacement - Economic impact
The literature frequently highlights concerns that generative AI systems could adversely impact the economy, potentially even leading to mass unemployment. This pertains to various fields, ranging from customer services to software engineering or crowdwork platforms. While new occupational fields like prompt engineering are created, the prevailing worry is that generative AI may exacerbate socioeconomic inequalities and lead to labor displacement. Additionally, papers debate potential large-scale worker deskilling induced by generative AI, but also productivity gains contingent upon outsourcing mundane or repetitive tasks to generative AI systems.
ENTITY
2 - AI
INTENT
2 - Unintentional
TIMING
2 - Post-deployment
Risk ID
mit80
Domain lineage
6. Socioeconomic and Environmental
6.2 > Increased inequality and decline in employment quality
Mitigation strategy
1. Implement a Universal Basic Income (UBI) or a portable, non-employer-linked social benefits system (e.g., healthcare and retirement) to establish a foundational economic safety net, thereby mitigating the severe financial instability and exacerbated socioeconomic inequality resulting from large-scale labor displacement. 2. Reform tax and regulatory frameworks (e.g., IRC sections 162 and 127) to eliminate disincentives for corporate and individual investment in continuous workforce upskilling and reskilling, prioritizing the development of human-AI complementarity skills (e.g., critical thinking, ethical reasoning) to facilitate the transition of at-risk roles into augmented positions. 3. Develop and fund strategic workforce development initiatives, such as an Artificial Intelligence Worker Training Fund, to provide targeted support and stipends for displaced workers, directing them towards occupations with low AI exposure or generalized, transferable skills to maximize post-displacement earnings and reemployment success.