UBI May Support the Upcoming AI-Driven Global Economy

The rapid evolution of artificial intelligence (AI) has slowly transformed both work and economies. From automating tasks to creating entire new industries, AI has displayed an astonishing ability to disrupt traditional approaches. But as automation becomes increasingly omnipresent, it is clear that our thinking about work and payments must change too. One answer proposed to some of the problems encountered in modern life is Universal Basic Income (UBI), whereby regular, unconditional cash payments are transferred to individuals. Could this idea provide a safety net as we head into a future dominated by AI?

The Changing Face of Employment

AI is molding today’s workforce—that is, in ways that couldn’t have been imagined a mere decade ago. Machines are taking over tasks requiring precision, speed, and reliability—and in doing so, they are being designed with abilities that few humans can match. Increasingly, industries such as manufacturing, logistics, and even customer services are turning to automatic systems, leaving many familiar jobs unavailable to human employees.

While this may sound like a terrible turn of events for workers, not all is lost. AI is also opening up whole new categories of work that didn’t exist before: notably in technology and the arts. However, these openings usually need special skills. That means there’s a gap between those who can adapt to the new situation and those who can’t. UBI could serve as a bridge, giving financial stability while people learn a different trade or look for other kinds of employment.

Creating a Safety Net in an Advanced Economy

As AI-driven technologies continue to advance, the gap between high-tech jobs and low-skilled labor is widening. Many now wonder how they will support themselves in a world where traditional work becomes ever less secure. This is where Universal Basic Income comes in. By providing people with a regular income without requiring them to engage in conventional employment, UBI could enable people to meet basic needs in this emerging world.

With many low-skill jobs becoming less viable for human workers, a larger and larger percentage of the population may make the jump into more artistic and creative fields. Take the video game industry for example. From humble beginnings, it has rocketed to new heights in a startlingly short space of time, and many new careers, from artists who create the graphics, to sound designers, to the programmers who tie the various pieces together, have all sprung into existence with this new field.

Imagine for a moment that you are trying to develop the latest in a series of online poker games. You would need software engineers to write the code, artists to animate the cards moving to and from the players’ hands, and many more specialists along the way to help make the online poker game stand out from both previous versions and your competitors.

Still, it can be hard for anyone to find the time to pursue such goals, especially with the rise of artificial intelligence making many forms of traditional employment less and less profitable. Implementing Universal Basic Income may free up large sections of the population, giving them the time and ability to focus their efforts with projects such as creating new video games and other forms of art, while artificial intelligence systems handle the previous forms of employment far more efficiently than human workers ever could.

Promoting Innovation

One of the most substantial advantages of UBI is that it can provide people with the ability to break free from low-paying, monotonous labor, and seek their own path or start their own companies. Throughout history, it has been shown that when people are relieved of financial pressure, they are more likely to take risks and think differently.

Certainly, some experts believe the fusion of AI and humans can herald a new age for human-AI partnership. As our recent piece points out, AI may be able to replace humans in some tasks, but it simultaneously creates opportunities for humans to do things machines cannot — be creative, build relationships, and innovate. With UBI as a financial cushion, more people might take up such unexplored territories — thus propelling us forward in a number of sectors.

Addressing Concerns Without Interrupting Momentum

Critics often argue that UBI could lead to slackening motivation at work. However, the results from experiments in many countries have been encouraging with participants who received the money using it to improve their education, start companies, or care for their families. Far from fostering dependency, UBI may actually set the stage for humankind’s greatest potential within an increasingly mechanized world.

A Practical Solution

Even though UBI is not a panacea, it does provide a practical solution to some of the crucial problems caused by AI’s rapid advance. It can help alleviate poverty, provide a financial cushion, and empower people living in a world where the nature of work as we’ve known it keeps on changing.

Now, the world economy stands at a crossroads. Automation, AI, and so on are no longer just words that buzz around the ears, but realities. Consideration of these changes is in motion. If they are going to happen anyway, then why should we dread their approach?

The real question becomes not whether we can afford UBI, but can we afford not to? As AI continues to expand the limits of what is possible, UBI may end up being the support system we all need to bloom in an age of unprecedented technological change.