AI boom could widen income inequality, Labor MP warns
AI use in the workforce could see the wage gap shrink, while worsening inequality.
Labor MP Andrew Leigh warns that artificial intelligence (AI) could exacerbate overall income inequality, despite potentially shrinking wage gaps. The assistant minister for productivity, competition, charities and treasury will argue that the biggest gains from AI may accrue to those who own the technology, rather than those who utilize it.
Leigh suggests that while AI may make a junior worker more productive and reduce the number of junior workers a firm requires, it could result in fewer employment opportunities for young Americans or a slowdown in Australia. He emphasizes the importance of trust in AI, as it holds the potential for significant productivity and economic benefit for Australia.
However, the distribution of these benefits depends on who owns the productive assets and captures the surplus. Leigh cautions that AI could lead to a widening gap between individuals earning from their work and those profiting from owning capital, rather than through wages. The Joint Select Committee on Artificial Intelligence will present interim findings to the government on AI guardrails, with Labor MP Jo Briskey and Liberal Senator Jonno Duniam considering a pathway to a bipartisan deal.
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