Doubling Down on AI: A Two-Pronged Approach to Mitigate Risks and Maximize Benefits

Doubling Down on AI: A Two-Pronged Approach to Mitigate Risks and Maximize Benefits Understanding the Proposed AI Act CONVERSATIONAL CHAT INFORMATIVE BOOK By ABEBE- BARD AI WOLDEMARIAM The specter of AI looms large, promising both revolutionary advancements and unsettling societal shifts. While the EU's recent AI regulation attempts to steer innovation down a responsible path, potential pitfalls like rising inequality and mass unemployment threaten to cast a long shadow. This book proposes a two-pronged approach to both mitigate these risks and maximize AI's benefits: inequality insurance and unemployment mitigation strategies. The first prong, inequality insurance, envisions dynamic tax adjustments that redistribute wealth as AI disrupts income distribution. This not only prevents wealth from becoming concentrated in the hands of a few, but also provides flexibility for future governments and resonates with voters' moral principles. However, concerns regarding political feasibility, disincentives to work at high tax rates, and limitations in extreme cases of inequality must be addressed. The second prong tackles the specter of AI-driven unemployment by exploring options like guaranteed minimum income, subsidized wages, and adjusted corporate taxes. Each option carries its own pros and cons, demanding careful consideration of effectiveness, funding feasibility, and public acceptance. Importantly, inequality insurance itself can generate revenue through its dynamic tax system,potentially funding unemployment mitigation programs and reducing reliance on alternative sources. In conclusion, embracing a proactive two-pronged approach is crucial for navigating the promise and peril of AI. By mitigating its risks and maximizing its benefits, we can build a future where AI empowers a more equitable and secure society for all. The time for action is now, and this book offers a roadmap for policymakers to navigate the road ahead with purpose and foresight.