Will AI Automation Lead to Universal Basic Income? Insights from Goldman Sachs and Industry Leaders

by time news

2024-07-27 20:38:00

Studies indicate that several jobs could be replaced by AI. (Illustrative image Infobae)

A study by Goldman Sachs has warned about the potential automation of up to 300 million jobs due to advances in artificial intelligence, which would affect a quarter of the workforce in the United States and Europe. Sam Altman, the creator of ChatGPT, explores what people could do if AI and robots replace them.

Altman considers universal basic income as a possible solution. In 2016, he expressed his interest in funding a study on this idea in his YCombinator blog, believing that there was a lack of concrete data to determine its effectiveness.

Elon Musk, in an interview with CNBC conducted in 2016, pointed out that the rapid advancement of robot capabilities would drive the creation of this economic income. “There’s a good chance we end up with a universal basic income, or something like that, due to automation,” said the founder of Tesla.

A study by OpenResearch, funded by Altman, showed that universal basic income maintains mental health and encourages donations to charitable causes, suggesting it could be a viable response to the labor challenges of automation.

Sam Altman believes that universal basic income could be the solution if workers are replaced. REUTERS/Denis Balibouse/File Photo

Universal basic income is an economic and social concept that proposes providing all citizens with a regular, unconditional income, enough to cover their basic living needs. This income is granted regardless of the individual’s economic, labor, or social situation, and is not subject to requirements like actively seeking employment or income verification.

According to the study funded by Sam Altman, universal basic income has the potential to optimize the lives of people who are unemployed or who have been replaced by robots.

OpenResearch selected 3,000 participants with incomes below $28,000, residents of Texas and Illinois, in various populations. One-third of these participants were given $1,000 a month for three years unconditionally, while the control group was paid $50 a month.

Advanced robots and various AI tools have automated some processes. (Illustrative image Infobae)

In total, $45 million was distributed, of which $14 million came directly from Altman. He also raised an additional $60 million to complete the financing and cover the study’s costs, led by researcher Elizabeth Rhodes.

The results showed that those who received the $1,000 a month increased their spending by an average of $310 a month, allocating this increase to food, rent, and transportation. Additionally, they offered more support to people in need compared to the control group.

“Recipients have shown more autonomy in making decisions that better fit their lives and preparing for the future, from moving neighborhoods to expressing interest in new business initiatives,” said the authors of the research.

Significant reductions in stress, mental distress, and food insecurity were observed during the first year. However, these effects diminished in the second and third years of the program. The researchers noted that “cash alone cannot address challenges like chronic health conditions, lack of childcare, or high housing costs.”

People receiving universal basic income showed fewer signs of stress. (Illustrative image Infobae)

Jaron Lanier, a pioneer of virtual reality, has discussed universal basic income as a possible solution for job displacement caused by AI. Lanier argues that increasing automation could result in massive job loss, leading some to consider this income as a viable alternative.

However, Lanier warns that this measure could concentrate enormous power in the institutions responsible for distributing income, which could present problems both from a political and spiritual perspective.

“It’s not about being against universal basic income, but being against turning it into the organizing principle of society. So for me, that political problem is serious,” he said during a discussion at the University of California, Berkeley.

The Future of Work: Will AI Replace Jobs and Lead to Universal Basic Income?

A recent study by Goldman Sachs reveals that advancements in artificial intelligence (AI) could put approximately 300 million jobs at risk, particularly impacting one-quarter of the workforce in the United States and Europe. This shift raises critical questions about the future of employment and income security in an increasingly automated world.

Sam Altman, the creator of ChatGPT, has proposed universal basic income (UBI) as a potential response to the job displacement led by AI and robotics. His interest in UBI dates back to 2016 when he expressed a desire to fund research on its efficacy. Altman’s emphasis on UBI stems from the belief that it could provide vital financial support to those who may be out of work due to automation.

Elon Musk echoed similar sentiments during a CNBC interview, suggesting that the rapid evolution of robotic capabilities could result in the need for a basic income solution. He noted, “There’s a very good chance we end up with a universal basic income,” indicating that this might be a necessary adaptation in the face of widespread job losses.

A study funded by Altman’s OpenResearch initiative focused on UBI’s benefits, particularly on mental health and philanthropic contributions. The research involved 3,000 individuals in Texas and Illinois, with one-third receiving $1,000 a month for three years, while a control group received only $50. The findings indicated that those who received the UBI experienced increased spending on essentials, enhanced autonomy in decision-making, and reduced levels of mental stress and food insecurity.

However, experts like Jaron Lanier caution against viewing UBI as the sole solution to the challenges posed by AI and automation. While Lanier acknowledges the potential for UBI to support individuals facing job loss, he warns of the risks associated with centralizing power in the institutions responsible for distributing these funds. “It’s not about being against UBI but rather opposing the idea of it as the core organizing principle of society,” he remarked, emphasizing the need for a balanced approach.

As the workplace landscape continues to change with the rise of AI, discussions surrounding universal basic income and job automation will become increasingly relevant. Stakeholders will need to navigate these complex issues, considering both the potential benefits and drawbacks of policies aimed at mitigating the impacts of technological advancement on employment.

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