Artificial intelligence (AI) is rapidly transforming various aspects of society, raising critical questions about how it will reshape economic systems and wealth distribution. As AI promises innovation and efficiency, the challenge lies in ensuring that its benefits are equitably shared among all members of society.
In Australia, food waste exemplifies this dilemma. The Australian government reports that approximately 7.6 million tonnes of food are wasted annually, equating to about 312 kilograms per person. In stark contrast, around one in eight Australians face food insecurity, largely due to insufficient funds to purchase necessary food. This disparity raises concerns about the ability to fairly distribute the potential abundance generated by AI advancements.
The economic implications of AI are profound. Renowned economist Lionel Robbins defined economics as the study of the relationship between ends and scarce means. Traditional market frameworks focus on allocating limited resources to fulfill endless wants, a model that could falter in an era of AI-driven abundance. As AI continues to evolve, it poses questions about the future of work and how people will earn money in the absence of traditional employment opportunities.
Critics argue that the current economic system often results in unemployment and underemployment, even in times of apparent plenty. Economist John Maynard Keynes highlighted that market systems can lead to economic downturns, leaving resources and labor underutilized. The recent economic challenges stemming from the COVID-19 pandemic illustrated this, revealing how changes to government benefits could alleviate poverty and food insecurity. In Australia, adjustments to welfare payments during the pandemic significantly reduced poverty levels, demonstrating a potential pathway to addressing the challenges posed by AI.
The concept of a universal basic income (UBI) has gained traction, particularly among researchers at the Australian Basic Income Lab, a coalition involving Macquarie University, the University of Sydney, and the Australian National University. UBI proposes that all individuals receive a guaranteed income sufficient to cover basic necessities, potentially allowing societies to navigate the transition brought about by technological advancements.
However, the interpretation of UBI varies widely. Some advocates, including Elise Klein and James Ferguson, propose a model that frames UBI not as welfare but as a “rightful share” of the wealth generated through collective human effort and technological progress. They argue that just as natural resources are viewed as collective property, so should the wealth created by AI advancements be shared equitably among all individuals.
Alternatives to UBI also exist. Author Aaron Bastani advocates for “fully automated luxury communism,” which envisions a future where technological advancements lead to higher living standards and reduced working hours. Bastani’s approach favors the provision of universal basic services, offering essential needs such as healthcare, education, and transportation directly to individuals, rather than providing financial resources to purchase these services.
The ongoing discussions surrounding UBI and universal basic services highlight that AI alone is unlikely to create an ideal society. As Peter Frase explains, the intersection of technological advancement and ecological sustainability can yield vastly different social outcomes. Without thoughtful policy and governance, the concentration of power in technology companies may lead to “technofeudalism,” where market and democratic principles are undermined by authoritarian structures.
The potential for AI to create a better world is immense, but realizing this potential requires a fundamental rethinking of how wealth is distributed and how society values work. As Ben Spies-Butcher, an associate professor at Macquarie University, notes, the resources to address poverty and food insecurity already exist. The challenge lies not in the technology itself but in our willingness to implement the necessary social changes to ensure that everyone benefits from the advancements of the AI revolution.
