If AI is not just another technology that replaces some jobs while many new ones are created, then we will need a new economic model.
Quite possibly, AI itself will invent and implement such a model. But until it does, let us invent and implement it as humans. It is high time.
It is quite possible that we will not need to replace our current market-capitalist model with a social role of the state at all.
Let us imagine a world in which AI (together with physical robots) can already perform all human work better than any human. And more cheaply. Quite simply, as humans we will no longer be market-competitive.
We may even prefer that some work continues to be done by humans.
But for that to be possible, we must figure out how to finance it. How to ensure that broad segments of society can obtain income and wealth from something other than their non-competitive labor.
Several options present themselves, and we should consider the pros and cons of each and possibly combine them.
UBI
One option is the classic unconditional universal basic income. It would probably be appropriate for it to come from both global and national taxes.
UHI
Another is the newly discussed universal high income — for example, so that every person on the planet could live as well as today’s upper middle class in the United States or Western Europe.
This would, however, require significantly more sustainable use of resources. But AI may also help us solve this problem.
Wealth and income inequalities would still exist. Not everyone can have a seafront apartment overlooking the ocean.
Conditional income
Perhaps there should also be an additional bonus in the form of conditional income. For example, people who engage in lifelong learning, volunteer work, participate in elections, attend regular preventive health checkups, and so on would receive additional bonus income.
This can be controversial, so such a feature should be subject to broad social and political discussion, democratic decision-making, and ongoing reassessment.
Valuing meaningful work
Another option is the creation of essentially artificial or subsidized jobs based on meaningful work for others.
These positions could also have significantly shorter working hours, for example 3–4 days a week, 4–6 hours a day. They would be important roles in public administration, politics, local and regional government, the nonprofit sector, foundations, and similar areas.
Mass entrepreneurship
Quite possibly, many people could also become entrepreneurs thanks to AI. They would simply create an AI agent that acts as the CEO of other AI agents, which together would run their company or companies.
Micro-businesses with a story
People could also start opening small businesses that are passion projects and would be non-competitive in today’s market environment. But their goal would no longer be to support the owner and employees or to generate profit.
The goal would be local businesses built on relationships with customers — small bookstores, restaurants, cafés, and so on. The primary workers could easily be robots, while the owner would show up mainly to build relationships with customers.
Mass investing
Likewise, many people could obtain income from investing carried out by investment funds managed by top-tier AI agents. We would all receive dividends, and immediately.
At the same time, such investment funds would be established for every person at birth. The state would contribute regularly. Parents too. People would not have to wait for retirement; they would have investment income already in adulthood.
The welfare state
In addition to all this, we could still have a traditional welfare state with a range of social benefits and public pensions.
Of course, all of this assumes that we manage to tax the wealth generated by AI far more effectively and fairly.
An aristocratic life for everyone
The near future with AI will very likely be either one where the masses survive in hopeless poverty, or one of nearly unlimited and continuously growing prosperity — prosperity people may help create themselves, but will not be required to.
In short, we can create a world in which an aristocratic life is finally possible — this time for everyone. The meaning of life in such a world is another topic, though.