Bridgewater calls for AI tax and public ownership to spread benefits of tech boom

Bridgewater Associates, a hedge fund with assets exceeding $100 billion, has proposed a series of measures aimed at ensuring the benefits of artificial intelligence are more evenly distributed among the general public. According to a report by the New York Post, these recommendations were outlined in a recent paper by Bridgewater's chief investment officer, Greg Jensen, and CEO, Nir Bar Dea, among others.

The proposals come as investors, policymakers, and technology companies grapple with AI's potential impact on employment, economic inequality, and corporate dominance. Bridgewater's executives have stressed the urgency of addressing AI-related risks while still allowing the technology to generate economic advantages.

One of the more unconventional suggestions is a "token tax" on AI usage. Bridgewater estimates that a 35% levy could generate up to $600 billion by 2030. Instead of distributing these funds through a universal basic income, the firm proposes using the money to acquire shares in leading AI companies and subsequently distributing the resulting ownership to citizens.

Jensen argues that this approach would provide greater economic participation than government-funded cash payments while minimizing politicians' influence over how and when benefits are distributed.

Bridgewater also argues that AI-generated work should not enjoy a tax advantage over labor performed by humans. Any revenue generated from the AI tax could potentially be used to lower taxes on workers or support those whose jobs are displaced by automation. The hedge fund is concerned about AI's rapid pace of transformation, warning that waiting for the technology to become more deeply integrated into businesses and society could make it more difficult to mitigate its disruptive effects.

The proposals also call for stricter oversight of major AI companies. Jensen suggests that firms controlling more than 5% of US or global AI computing capacity should face additional scrutiny, comparing this to the heightened supervision of systemically important financial institutions. He warns that a small number of AI companies could gain control over a significant portion of global computing capacity within the next few years, resulting in an excessive concentration of economic and strategic power that demands government intervention.

In addition to these measures, Bridgewater is advocating for enhanced oversight of AI safety, including regular government interviews with employees at AI laboratories to discuss potential risks associated with emerging models and the steps being taken to address them.