If the AI revolution is unlikely to lead to widespread technological unemployment, then there should be no need for much-vaunted policies such as a Universal Basic Income. Instead policymakers should focus on facilitating the adoption of AI, promoting supply-side flexibility to adapt to the challenges it poses and providing a social safety net targeted on those left behind. Policymakers will also need to devise a regulatory framework that insures that gains from AI are not monopolised by a small number of firms. The good news for governments is that the AI revolution could deliver large fiscal benefits.
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