Artificial Intelligence and Its Impact on Employment

There’s a wide consensus that artificial intelligence (AI) and robotics are fundamentally changing our society and the world at large. Yet, there’s considerable disagreement on what that change actually looks like. One thing is clear: we need a more in-depth discussion about this crucial issue.

Microsoft has highlighted that certain jobs are particularly vulnerable to AI.

Many of the world’s richest individuals—Elon Musk, Larry Ellison, Mark Zuckerberg, and Jeff Bezos—are pouring vast sums into these technologies. But why? Is it really about improving life for the 60% of Americans who struggle to make ends meet? Perhaps, but I’m not convinced. I think it’s more about increasing wealth and power for themselves.

With their investments in AI and robotics, these billionaires are enabling businesses to significantly cut jobs, reduce costs, and ramp up profits. The outcome? The richest get richer while many workers face unemployment.

If we don’t take action, we may see serious consequences in the next decade.

As a member of Congress who opposed catastrophic trade policies that harmed communities, I want to bring back American manufacturing. However, new factories won’t help if machines do all the work instead of people.

Musk aims for Tesla to produce millions of robots, which would ultimately displace workers in factories, warehouses, and restaurants. This could lead to the loss of millions of good jobs. It’s pretty straightforward.

And it’s not just Musk. Amazon, for instance, has eliminated 27,000 positions since 2022, while utilizing over a million robots in its warehouses. Those machines are likely to outperform human workers before long.

In 2016, Foxconn—a major supplier for companies like Apple and Google—replaced 60,000 jobs at a Chinese factory with robots and is now planning a fully automated factory.

Foxconn’s CEO recently suggested that advancements in AI could eliminate the need for outsourcing jobs to countries with lower wages.

But it’s not just manufacturing jobs at risk.

Many of us desire advanced, efficient transportation systems, which include millions of new vehicles. However, if individuals like Musk have their way, many of those vehicles will be driverless. This means countless jobs for truck drivers, bus drivers, and taxi drivers could vanish.

This isn’t just a scenario for the distant future; it’s already happening. FedEx is using driverless trucks for long-haul deliveries, while companies like Walmart and IKEA are also experimenting with autonomous vehicles.

We certainly desire more startups and small businesses, but this ambition feels hollow if a significant portion of entry-level jobs disappears in the near future. Dario Amodei, founder of Anthropic, has pointed out that this could very well happen.

I’m part of the Health, Education, Labor, and Pensions Committee, and we’re looking at the possibility that nearly 100 million jobs could be replaced by AI in the next decade. This number could even be on the low side.

In June, Ford’s CEO mentioned that AI might eliminate “literally half of all white-collar jobs” within ten years. Musk has stated that, perhaps, “none of us will have jobs,” suggesting that AI will provide all the necessary products and services.

Bill Gates echoed this sentiment, predicting that humans might not be needed for most tasks over the next decade, bringing into question what happens to those millions who find themselves jobless.

This concern extends beyond mere economics. Work is an essential part of human identity, whether you’re an administrative assistant or a surgeon. Most people want to contribute, and removing this aspect of life raises significant questions about our humanity.

Further complicating matters, the rapid evolution of AI could lead to profound, possibly inhumane changes in our lives, reshaping relationships and altering our societal fabric.

Can AI and robotics be beneficial? Yes, I genuinely believe that. I’m not against technology at all. The goal should be to ensure that new advancements serve human needs rather than just filling the pockets of a select few. We don’t need a more efficient society; what we need is a world where individuals can lead healthier and more fulfilling lives.

So, where do we go from here? There are a few suggestions on how we might ensure that technological advancements benefit the average American.

First, consider implementing a 32-hour workweek without a reduction in pay. American workers are now far more productive than they were in the 1940s, and AI is set to increase that productivity even further. Shortening the workweek could significantly enhance life quality for millions.

Next, large corporations should be required to ensure that at least 45% of their board is comprised of elected workforce representatives. Workers should have a say in how AI is integrated into their workplaces to avoid scenarios where top executives reap enormous rewards while employees continue to struggle.

Also, we should increase the profit share for employees at major companies. I believe workers deserve at least 20% of the shares in their organizations. Business profits should benefit more than just the wealthy few.

Additionally, we must broaden the concept of ownership for employees. When workers own their companies and contribute to decision-making, the interests of the entire workforce become prioritized.

Lastly, instead of showering corporations with tax breaks for replacing human labor with technology, we should consider implementing a tax on robotics. The revenue generated could then go toward supporting displaced workers.

In summary, AI and robotics are reshaping our world, and the benefits of these changes ought to be shared, not concentrated in the hands of a select few.

It’s time to initiate this conversation.