In recent months, bad news about AI replacing jobs has been coming almost daily. Last Thursday, BT unveiled its latest plans, announcing that it will replace 10,000 employees with AI technology.
Throughout Europe, predictions have emerged about the impact of automation technology on the job market, and it is widely believed that major changes are inevitable. With the impact, we also urgently need to take action to address it.
The following five interventions may ease the anxiety brought about by the AI revolution.
Promote workforce retraining
The concept of "lifetime employment" has been extinct since long before the relentless penetration of AI into the workplace. Practitioners are increasingly accustomed to regularly updating their knowledge and skill sets.
Governments can mitigate this dramatic change through policy. Italy this week launched a new fund to retrain employees in skills. The 10 million euros allocated will help job groups whose jobs may be replaced by automation to update their labor skills.
Although the total amount of funds is not high, it is still a good start.
Restructuring the education system
In addition to improving the skill level of the current workforce, students need help to prepare for the future work environment.
To support the student population, analysts have recommended a variety of education reform ideas, ranging from technical and scientific skills for technical jobs to a reservoir of soft skills that will be essential throughout people's careers.
One popular idea prioritizes "21st century skills," including creativity, critical thinking and communication skills. Another thread emphasizes the creation of highly specialized knowledge training systems. For example, Finland has launched a free AI online course, which fully illustrates the essence of "join if you can't beat it".
Wage subsidy
Technology may not completely eliminate jobs, but sometimes only slowly cut the income level of traditional jobs.The rise of Uber has not reduced the number of cabs on the road, but it has actually depressed the wages of cab drivers.
One way to mitigate the loss of income would be to increase wage subsidies and protect the principle of "earned income" for low-income groups by providing at least a living wage. In addition, child care, income tax credits, or wage insurance for jobs that have been automated to pull in low wages could be used to disguise the increase in workers' earnings.
While these programs are costly, they are still more affordable than directly paying benefits to the unemployed. Preserving jobs can also provide more satisfaction and social benefits to the people.
Create more "good jobs"
For people who have lost their jobs due to the impact of AI, the government can consider helping them to find "better jobs".
According to Harry Holzer, former chief economist of the U.S. Department of Labor, "good jobs" should meet the criteria of good pay, clear promotion opportunities and certain security.
Holzer pointed out in a blog post at the Brookings Institution: "Providing tax and financial subsidies to employers that create 'good jobs' can encourage them to further improve the quality of their jobs. Also consider mandatory requirements for business employers, but be sure that the specifics are not too stringent or costly, or they will instead exacerbate employers' willingness to choose automated technologies (a mandatory $15 hourly minimum wage in low-income areas of the U.S. has had such a counterproductive effect)."
Provide universal basic income security
Any proposal for governance that lacks a universal basic income guarantee clearly does not claim to be complete.
The specific concept is very simple: every citizen would receive a fixed sum of money to maintain their basic livelihood. Supporters argue that such a policy would help eliminate poverty, improve well-being, and redistribute wealth. Critics, on the other hand, warn that it would be costly, exacerbate inequality and eliminate incentives to work.
Like it or not, the concept is gaining traction in Europe, where a recent YouGov poll found that all seven European countries surveyed were relatively supportive of such policies. Respondents in Germany, Spain, Italy and the United Kingdom were mostly in favor, with some opposition in Sweden and stronger opposition in France and Denmark.
While a universal basic income guarantee is by no means the only option for social welfare, it at least deserves a place in this proposal.