Oddbean

AI’s impact on income inequality in the US ========== AI's impact on income inequality in the US is analyzed in this article. High-skilled, high-income workers are likely to benefit from AI in the short term, while more workers may face job loss due to automation as AI advances. Policymakers should monitor AI's potential to exacerbate inequality and implement policies to boost AI literacy and share AI-driven productivity gains more equitably. Studies have found that lower-skilled workers in certain occupations derive greater productivity gains from AI than higher-skilled workers. However, this task-level evidence may not accurately predict the economy-wide impacts of AI on inequality. AI could increase inequality in the US through two mechanisms: skewed productivity boosts towards high-income workers in the near term, and increased income share going to capital at the expense of labor in the longer term. Policymakers should invest in AI literacy and access for a broader population of workers and strengthen safety nets for displaced workers. The future of AI could lead to automation that shifts economic returns from labor to capital, potentially resulting in job losses and lower wages in affected industries. Policymakers should address the challenges posed by AI's transformative potential to ensure that it benefits all members of society and does not exacerbate inequalities. #Ai #IncomeInequality #Automation #ProductivityGains #HighskilledWorkers #LowskilledWorkers #Capital #Labor #Policymakers https://www.brookings.edu/articles/ais-impact-on-income-inequality-in-the-us/