The Coming AI Backlash
The AI economic transformation has begun, significantly impacting the workforce across various industries. Major companies like IBM and Salesforce have already begun to replace human employees with artificial intelligence chatbots as part of their automation strategies. In recent months, companies such as UPS, JPMorgan Chase, and Wendy’s have also reduced their workforce, marking a trend that is likely to continue. This shift is creating challenges for recent college graduates, who are facing the toughest job market in nearly a decade.
According to surveys conducted globally, businesses are planning to adopt AI technologies to transform their workforces, leading to a potential major political issue as disruptions in employment become apparent. Workers displaced by AI are likely to express their frustrations at the ballot box, prompting policymakers to develop protective measures.
Understanding Worker Concerns
In a survey conducted in November 2023, 6,000 Americans and Canadians were asked about their concerns regarding AI and its potential to cause mass layoffs. The results revealed that fears surrounding job loss due to AI ranked higher than any concerns related to the technology’s military applications. This highlights the urgency for policymakers to understand the public’s perception of the technological threat.
Policy Preferences: Grounds for Optimism and Pessimism
On a positive note, most respondents favored policies such as retraining programs and expanded safety nets—solutions that economists believe can effectively address job displacement. However, many participants also supported trade restrictions and immigration barriers, which could exacerbate the problem. Historically, governments have responded to job losses from offshoring with tariffs and deportations, neither of which succeeded in mitigating the impact.
Effective Responses to AI Disruption
To counter the expected rise in AI-induced layoffs, policymakers must act swiftly and effectively. Survey results indicate that regardless of political affiliation, respondents supported worker retraining as the preferred policy response, averaging a score of four out of five. Additionally, regulation of AI and expanding social spending were also popular, although the latter received less support among conservative voters.
Despite the apparent public support for these measures, historical precedents show that governments often fail to implement them effectively. In the past, responses to economic shocks have been lackluster, with few comprehensive laws passed to regulate AI usage, and retraining programs inadequately funded.
The Risk of Ineffective Policies
One of the greatest risks is that governments will adopt counterproductive policies in response to AI layoffs. Politicians may resort to protectionist measures, such as restricting immigration and trade, which are politically popular but do not effectively address the root causes of job loss. Research indicates that such measures could actually accelerate job losses by increasing costs and uncertainties for businesses.
Public support for these exclusionary policies is notable, with respondents indicating a willingness to embrace immigration restrictions as a response to AI disruptions. Among Republicans, support for such measures averaged four out of five, illustrating a significant political trend that could hinder more effective solutions like retraining and regulation.
Moving Forward: Prioritizing Effective Solutions
Despite the challenges, there is still an opportunity for governments to take decisive action. Policymakers can implement robust retraining programs to help workers adapt to the changing job landscape, provide income support for those impacted, and establish regulations that ensure the safe deployment of AI technologies. Funding for these initiatives could be sourced from taxes on large AI corporations, ensuring that those benefiting from the disruption contribute to managing its consequences.
By acknowledging the needs of displaced workers and offering viable solutions, governments can restore public trust and mitigate potential political backlash. The time for action is now, as the rapid acceleration of AI adoption poses an imminent threat to the workforce. Proactive measures are essential to protect both the economy and the democratic process.
