The U.S. government is currently exploring the implementation of laws to assist society in adapting to the rapid rise of artificial intelligence (AI) technology. Early adopters of AI have already begun to witness significant gains in labor productivity. For instance, Klarna, a popular buy now, pay later financial services provider, anticipates that its AI assistant tool will boost its profits by a substantial $40 million by the conclusion of 2024. According to Klarna CEO Sebastian Siemiatkowski, this AI tool performs the work of 700 full-time agents and efficiently handles around two-thirds of all incoming tasks through chat.
Klarna’s AI assistant tool is powered by OpenAI’s advanced systems, which support products like ChatGPT and Sora. These products have garnered attention from both the general public and policymakers, with Congress engaging in panels and sessions with key tech executives such as Sam Altman, the CEO of OpenAI. In response, the White House has enlisted the support of 15 industry leaders to guide lawmakers on risk identification and utilization of new technologies. While the U.S. Senate Task Force on AI has enacted numerous bills focusing on research and risk assessment, the regulatory landscape in the U.S. appears relatively lenient compared to measures implemented by the European Union in 2024.
Economists have long expressed concerns about the potential job displacement resulting from widespread AI adoption, particularly impacting white-collar workers, akin to the effects of globalization on blue-collar workers. The International Monetary Fund estimates that at least 60% of jobs in advanced economies could face substantial changes due to AI implementation. In response, lawmakers in the New York State Assembly have proposed a robot tax to mitigate the impact of tech-driven layoffs, aiming to impose a cost on companies that utilize technology to replace workers within the state. However, the fate of this bill remains uncertain as of April 2024.
Many economists advocate for setting robot taxes at a relatively low level if they are to be implemented at all. While both employers and employees in the U.S. are subject to payroll taxes of 7.65% of income, researchers from the Massachusetts Institute of Technology suggest that an optimal robot tax rate would fall between 1% and 3.7%. Erik Brynjolfsson, a senior fellow at Stanford Institute for Human-Centered AI, emphasizes the importance of not hindering productivity and technological growth with excessive taxes, noting that robots play a significant role in enhancing productivity levels.
The Future of Automation and Human Labor
Brynjolfsson foresees a future where robots will be capable of performing the majority of tasks currently carried out by humans. As technology continues to advance, it is crucial for policymakers, industry leaders, and society at large to collaborate in addressing the challenges and opportunities presented by artificial intelligence. By fostering innovation, understanding risks, and implementing thoughtful regulations, society can harness the potential of AI to drive economic growth and prosperity while mitigating any adverse effects on the labor market.