Humanoid robot holding a coffee cup on a busy city street surrounded by pedestrians.

Universal Basic Income: A Solution to AI-Induced Job Displacement?

Apollo Go became a trending topic on social media platform Weeo. This happened after reports of rapid user adoption in Wuhan city. The company started operating fully driverless vehicles in some areas in March. China has more than 7 million registered ride-hailing drivers. This is double the number from July 2021.

Apollo Go's success comes at a time when jobs are under threat. People look for ways to earn more money due to rising living costs. Jobs with security and extra income are very important now. In May, more than 70% of Apollo Go's rides were without any human staff. They plan to reach 100% in the coming quarters. This could help Apollo Go break even in Wuhan.

Robot holding a coffee cup in a crowded event space

There is a question of how Americans will receive this new technology. Many people have tweeted, commented, and reviewed these driverless cars. Apollo Go plans to roll out its service across the United States in the next few years. Some states may ban it, especially places like New York with many taxi drivers. Concerns about safety are also real, as some people have even set vehicles on fire.

As AI and automation grow, job losses are a big issue. Big companies like Tesla, Google, Microsoft, Nike, and Amazon have announced job cuts. Many business leaders expect more layoffs this year. About 40% of them plan to replace workers with AI. Future advancements in AI will speed up these changes. The ability of AI to perform human jobs leads to job displacement. This raises concerns about job availability and who will get those jobs.

Economist Guy Standing discusses the economic inequalities and insecurities caused by AI. He talks about Universal Basic Income (UBI) as a solution. UBI could provide a safety net and reduce stress caused by economic hardships. A study from the 1970s in Canada showed that UBI recipients were less likely to be hospitalized. This could also reduce healthcare costs.

Many people face high stress due to not having enough money. Regular income leads to lower stress and longer life. UBI could help improve mental health and living conditions. While UBI may not come soon, small pilot programs are being tested in the United States. As AI gets more capable, companies will adopt these systems. Humans will need to adapt to new roles. Many are not prepared for these changes.

Silicon Valley leaders support trials of guaranteed income models. These trials aim to help displaced workers. AI is expected to be as transformative as the Industrial Revolution. It may cause dramatic job losses but also increase efficiencies and profits. Critics argue that UBI funds could be misused. However, data shows UBI recipients mainly spend on essentials like food, housing, and healthcare.

The data from 30 U.S. UBI test programs shows that 43% of monthly payments go to essentials. Transportation costs account for a significant portion of spending. Discretionary retail services are also a big category. This suggests that most UBI money is spent on necessary items.

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