AI is changing the world. From self-driving cars to better healthcare, AI is transforming every aspect of our lives. Unfortunately, will also accelerate the widening gap between the wealthy and the poor. That is unless we begin to take steps to resolve this disparity.
I saw a statistic that read by 2030 the top 1% would own two thirds of the world’s resources. And that the 42 richest people in the world hold as much wealth as the bottom 3.7 billion!
There are many reasons for this. Part of it, the article explains, is that the wealthy are making money off investments. It takes money to make money. Many financial companies are beginning to develop AIs that help determine where to invest money. These programs can process massive amounts of information. They can identify patterns in the noise much better than humans can. But, you need to have free capital to invest to start taking advantage of these developments.
According to capitalism the free market will always correct itself. Smaller, more agile companies will disrupt big business. But as we’ve seen in the crash of 2008 many companies are now “too big to fail”. The consolidation of wealth is rapidly progressing. As soon as a disruptive company shows up, a larger company buys it. Just look at Audible, Zappos, and Goodreads; all purchased by Amazon. Or Occulus and Whatsapp purchased by Facebook. More locally TNT groceries and Shoppers Drug Mart picked up by the Loblaws empire. We need to work at redistributing wealth so that everyone gets a fair share. AI is either going to help solve this issue, or make it worse.
AI is beginning to revolutionize the auto industry. Self-driving cars will allow people to spend their commuting time focused on other tasks. Once the technology is more ubiquitous, people won’t own cars anymore, they’ll subscribe to car sharing services. Because cars will be shared, the per trip costs will decline, making them more accessible. Self-driving cars powered by AI, will also make roads safer, changing the insurance industry. No more getting cut off, no more traffic jams, no more fender benders, no more drunk driving, no more road rage.
AI is already beginning to change the logistics industry. Embark released the driver-less transport truck which is already on the road. Many other automakers are developing similar technology.
Edge computing and IoT are being used to determine just-in-time replacement materials. For example, the average plane has over 6000 sensors. These sensors can alert pilots and ground crews to wear and even auto-order replacement parts. This means no more inventory, no more storage required for parts, no more warehousing. Not to mention the increase in safety as parts will be replaced before they fail.
With the uses of AI, businesses will become more efficient, and unlock value in ways we can’t even conceive yet. But who will be the recipients of this unlocked wealth? And how can we ensure that everyone benefits?
One answer is universal income.
As Bertand Russell put it, “Stated in more familiar terms, the plan we are advocating amounts essentially to this: that a certain small income, sufficient for necessaries, should be secured to all, whether they work or not, and that a larger income – as much larger as might be warranted by the total amount of commodities produced – should be given to those who are willing to engage in some work which the community recognizes as useful…When education is finished, no one should be compelled to work, and those who choose not to work should receive a bare livelihood and be left completely free.”
The idea is that everyone should get funds with no strings attached. It takes some getting used to. It violates the narrative we tell ourselves about capitalism and the Protestant work ethic. We like to believe that if you work hard, and save your pennies that you will be successful in life. Conversely, we like to believe that poor people are either stupid or lazy. That all they need to do is pick themselves up by their bootstraps, follow their dreams, and work hard. It is central to the American Dream, a pillar of capitalism, and total bullshit.
We know from research that it is very difficult to become upwardly mobile. In fact you’re more likely to live the “American Dream” in Canada. We know that those born into poverty are more likely to stay there.
Our media industry celebrates the few individuals who are lucky enough to succeed and promote them as shining examples. Regardless of whether they’re an athlete, musician or entrepreneur, they are held up as shining examples of what hard-work can achieve. Meanwhile disregarding the thousands of people who work as hard (or harder) but do not advance. Or fall further behind. In “Outliers”, Malcolm Gladwell writes about how good fortune and timing contribute to success. Unfortunately, not everyone is lucky, and life isn’t fair. But that doesn’t mean we can’t try to even things out a little.
Universal income grants people the freedom to take risks. It grants them opportunities they may not otherwise have available. Recently there was a Reddit post on the basic income pilot project in Ontario. Individuals wrote about how their health improved since they could afford healthier foods. How their stress levels dropped and happiness increased. They wrote about improved living conditions and furthering their education. The Toronto star reported on the pilot project back in February.
Better health means less of a burden on the health system which will result in savings. With better education comes better job opportunities. Individuals may find themselves making enough money they’re no longer eligible for universal income. With AI taking over more of the mundane labor, people will begin to work 3-day work weeks and job share. The extra free time can lead to healthier family and social lives as well.
Universal income will also support increased innovation and new businesses. Without having to worry about how to pay the bills at home, individuals will be willing to take greater risks and explore new opportunities. What would you try today if you knew you were completely supported?
Granted, there will be some individuals who do not blossom under universal income. They will continue to sit on the couch, smoke weed and play video games. We need to step back from the capitalistic need to be productive and take a human-centered approach. An approach which focuses instead on happiness. As long as these individuals are happy who are we to say it is good or bad? You might argue these people are not living up to their potential. But their right to self-determination trumps any misgivings we have. We shouldn’t throw out the baby with the bathwater.
BARCELONA, SPAIN: Think Tank Publishes New Paper on City-Driven Basic Income
There are universal income pilot projects currently underway around the world. Ontario Canada has one, as does Finland, the Netherlands, and Spain. Along with universal healthcare, which all these countries have, universal basic income will hopefully be one of those things people in developed countries take for granted. A benefit that will be paid for (hopefully) by the wealth unlocked by AI.