But technology is not destiny: These trends and the magnitude of inequality are not solely determined by technology. Across the world’s advanced economies, the share of income going to the top 1 percent ranges from 18 percent in the United States to less than 10 percent in France, Italy, and Japan (as shown in the figure below). These countries all have similar technological capacities, but different institutions, cultures, and policies. Similarly, the fraction of the prime-age male population in the labor force in advanced economies ranges from 87 percent in Israel to 96 percent in Switzerland, with the United States below average at 88 percent. These differences in participation are enormous—to put them in context, the difference in the unemployment rate between good economic times and recession in the United States can be as little as 2 percentage points. And again, there is no major technological difference that explains the large discrepancies in employment rates among these countries. This suggests that there is no economic reason that the United States cannot address inequality and increase employment while enjoying even higher levels of technology and productivity than seen today. What matters is how labor-market institutions—such as job-training programs, relocation assistance, licensing regimes, and so on—cope with these changes, support the creation of new jobs, and successfully match workers to them. An overhaul of the policies that shape labor markets—such as unemployment insurance, education and training, the tax system, collective bargaining and wage protections, and so on—could greatly improve the functioning of the U.S. labor market, regardless of whether automation and AI materialize as expected. If labor-market institutions can be strengthened so that low-wage workers are able to prosper in the face of AI disruptions, then the question will be less how to avoid the advances but how to encourage them such that productivity growth can return to a positive trajectory. Public policy can play a role in encouraging that growth too. To be sure, the private sector will be the main engine of progress on AI. But as it stands, there is an underinvestment in basic research—research conducted for the sole purpose of furthering the scientific knowledge base—in part because it is difficult for a private firm to get a return from their investment in such research. Federal spending can help make up for this shortfall. In addition, public policy can support developments in cybersecurity and privacy, both of which are critical ingredients for an economy increasingly reliant on technology. Finally, policymakers need to continue to make sure that there is enough competition in the market so that workers are paid fair wages, consumers enjoy lower prices and a wide variety of goods, and companies keep investing in research and development. With the right conditions, AI is something to be welcomed, not feared. We want to hear what you think about this article. Submit a letter to the editor or write to letters@theatlantic.com. is the chairman of the Council of Economic Advisers.
The right policies can protect workers and make artificial intelligence a positive force in the job market , said President Obama ’s chief economist , Jason Furman . There is no economic guarantee that the US does not increase its use of AI without stoking unemployment , but an overhaul of labour policies will be needed , he said . Education , training , unemployment - insurance , employment , wage cuts and more will need to be implemented to ensure that AI does not adversely affect employees .