New York Lawmaker Proposes 'AI Dividend' for Citizens Amid Job Displacement Fears

New York state Assemblymember and congressional candidate Alex Bores has proposed a direct payment program called the "AI Dividend" to address potential job losses driven by advances in artificial intelligence. In an X post on Sunday, Bores outlined a plan to prepare the US and its citizens for the "potential large-scale displacement of human labor by artificial intelligence." The program would be funded through avenues such as a tax on AI use, equity stakes in leading AI companies, and tax reforms to the treatment of labor and capital. Funds would also go toward investments in workforce transition, training and education, and establishing oversight and safety infrastructure.

"Today, I'm proud to announce the AI Dividend, my plan to prepare for the AI economy with direct payments to Americans funded by tax reform that simultaneously incentivizes hiring humans instead of AI," Bores said. The proposal frames the dividend as an insurance policy rather than a punishment for innovation. "If AI dramatically increases productivity and concentrates wealth, the American people have a stake in those gains," according to the dividend plan.

The proposal comes amid growing concerns about AI's impact on employment. A recent Goldman Sachs report found that AI adoption has resulted in the loss of approximately 16,000 jobs per month over the past year. High-profile US tech giants including Amazon, Meta, Intel and Microsoft have either already laid off thousands of workers or have reportedly planned to do so due to efficiencies created by AI. Because apparently, when your chatbot can write aSlack message, you don't need the person who used to write Slack messages.

However, some analysts have offered a more measured outlook. Morgan Stanley released a report on April 14 noting that the impact on the labor market has been "modest so far," with limited evidence of widespread job losses. The firm argued that, historically, new waves of technology can help expand employment over time even as they displace some roles. The report did, however, acknowledge that AI could defy this historical precedent.

Bores is currently touting the policy as part of his run for a seat in Congress, and its progress may be dependent on the success of his campaign. Which, depending on who you ask, is either a feature or a bug in the American legislative process.