A.I. Is Going to Disrupt the Labor Market. It Doesn’t Have to Destroy It.

Sustainable Development Goals and the Future of Work

Introduction

In the context of the Sustainable Development Goals (SDGs), the future of work is a critical area of focus. As automation and artificial intelligence (AI) continue to advance, there is a need to ensure that workers are not displaced and that new opportunities for employment and upskilling are created. This report explores potential solutions to address these challenges.

1. Taxation and Incentives

The current US tax code favors displacement caused by automation and AI. However, implementing a broad robot or AI tax would hinder productivity growth. Instead, a displacement tax could be considered, where companies pay a tax every time they displace a worker due to AI. To encourage retraining, subsidies could be provided. This approach aligns incentives towards human-centered AI and discourages unnecessary displacement.

2. Augmentation over Replacement

Companies should strive to invest in AI that augments rather than replaces human workers. Research shows that when technology augments human workers, valuable new work is created, labor demand increases, and wages rise. Governments can play a role in funding AI research that focuses on creating new tasks to increase human productivity and empower workers and citizens.

3. Responsible AI Adoption

The Biden administration has taken steps to promote responsible AI innovation, including funding for research and development and issuing executive orders addressing various AI topics. The European Parliament has also drafted the AI Act, which aims to regulate the technology and protect workers. The Partnership on AI recommends thorough evaluations of AI systems to ensure they align with worker needs and proposes measures such as secure systems, transparency on data collection, and worker opt-out options.

4. Upskilling Opportunities

Rather than relying solely on passive income replacement programs like universal basic income (UBI), economists emphasize the importance of upskilling. Reskilling programs can help individuals with lower-demand skills elevate their professional status. Sector-based training programs, where community or technical colleges collaborate with employers and industry associations, have shown success in preparing workers for high-demand jobs. These programs have led to earnings gains and long-term employment opportunities.

Conclusion

The future of work in the age of automation and AI requires a multi-faceted approach that aligns with the SDGs. Taxation and incentives can discourage unnecessary displacement while promoting retraining. Augmentation of human workers should be prioritized over replacement. Responsible AI adoption and upskilling opportunities can ensure that workers are empowered and able to adapt to changing job requirements. By addressing these challenges, societies can work towards achieving sustainable and inclusive economic growth.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
• SDG 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 8.5: Proportion of employees receiving equal pay for work of equal value
• Indicator for SDG 9.2: Employment in industry as a proportion of total employment
• Indicator for SDG 10.4: Gini coefficient of income inequality

Table: SDGs, Targets, and Indicators

Explanation:

The article addresses the issues related to the impact of automation and artificial intelligence (AI) on workers and suggests measures to mitigate the negative consequences. These issues are connected to the Sustainable Development Goals (SDGs) of Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), and Reduced Inequalities (SDG 10).

Based on the article’s content, the specific targets that can be identified are SDG 8.5, SDG 9.2, and SDG 10.4. SDG 8.5 aims to achieve full and productive employment, decent work, and equal pay for all. SDG 9.2 focuses on promoting inclusive and sustainable industrialization. SDG 10.4 aims to adopt policies to achieve greater equality.

The article mentions or implies indicators that can be used to measure progress towards these targets. For SDG 8.5, the indicator is the proportion of employees receiving equal pay for work of equal value. For SDG 9.2, the indicator is employment in the industry as a proportion of total employment. For SDG 10.4, the indicator is the Gini coefficient of income inequality.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: chicagobooth.edu

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