AI job losses in U.S. fuels calls for universal basic income, AI tax

As artificial intelligence (AI) rapidly displaces workers across major industries in America, the concept of universal basic income (UBI) is gaining traction. Following a successful local pilot program, Cook County, Illinois has committed millions to a guaranteed income initiative. 

At the same time, former U.S. presidential candidate Andrew Yang argues that taxing AI firms could fund a solution to mitigate widespread job loss.

Several recent research and company reports cited by CNN estimate the short-term and long-term effects of AI and automation on jobs. 

A study by Massachusetts Institute of Technology (MIT) concludes that AI currently has the capacity to replace 11.7% of the American workforce, potentially impacting salaries of up to $1.2 trillion across major industries. 

Companies such as AmazonSalesforceWalmart, and Meta have announced AI-related layoffs, bringing the total to approximately 1 million in the country.

In the outlook, the forecasts have become worse. According to the McKinsey Global Institute, 40% of American jobs will be displaced by AI by 2030, and 92 million positions worldwide will face a threat, according to the World Economic Forum

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