Key facts
- A former Chinese official proposed an "AI substitution tax" to address job market shocks from AI.
- Jiang Xiaojuan, former deputy secretary-general of China's State Council, spoke at the Caixin Summer Summit.
- She warned that modern AI's autonomous capabilities make its impact on jobs unprecedented compared to past technologies.
Rather than solely increasing direct investment in artificial intelligence (AI), governments should focus on establishing strong social safety nets, potentially incorporating an "AI substitution tax," to cushion the impending impact of the technology on the labor market, according to a former Chinese official.
Speaking at the Caixin Summer Summit, Jiang Xiaojuan, who previously served as deputy secretary-general of China’s State Council, cautioned that contemporary AI, unlike previous technologies that merely aided human workers, can operate autonomously. This characteristic, she argued, makes its potential effect on employment unprecedented.