In response to warnings from industry experts about artificial intelligence’s potential to disrupt the global labor market, Democratic New York State Assembly member and U.S. congressional candidate Alex Bores has introduced a proposal known as the ‘AI Dividend.’ This policy aims to offer payments to Americans if AI significantly reduces employment levels.
Bores unveiled his plan on Monday via a post on X (formerly Twitter). The initiative would establish a contingency payment system activated by economic indicators that suggest automation is replacing jobs. “CEOs have openly expressed concerns that AI will drastically cut white-collar jobs,” the policy states. “Analysts predict up to 50% of positions might become automated in future years, with entry-level roles particularly at risk.”
The framework for the AI Dividend outlines specific triggers for payments: ongoing declines in labor force participation, wage reductions in impacted sectors, or swift increases in AI-driven productivity without corresponding job growth. If these triggers are activated, direct payments to Americans would be distributed alongside funding for workforce transition programs, educational initiatives, and governmental oversight.
The proposal aims to ensure the AI dividend is triggered by actual conditions rather than political decisions, yet it does not specify the payment amounts or distribution frequency.
This policy emerges as major AI developers like Sam Altman of OpenAI, Dario Amodei of Anthropic, Mustafa Suleyman of Microsoft AI, and Elon Musk of Tesla and xAI caution that their technology could automate vast swaths of human work. “What is remarkable about this AI boom is its unprecedented scale and speed,” Amodei told CNN last summer. “I am somewhat more concerned about the labor impact compared to past technological changes because it’s happening so rapidly that, while people will eventually adapt, they might not do so quickly enough.”
Bores announced his plan today as a proactive measure for the AI economy, promising direct payments funded by tax reforms that encourage hiring humans over AI.
“No one can predict exactly how this situation will unfold,” the policy notes. “However, we know if AI replaces a substantial portion of human labor, our current economic system is unprepared.”
Funding for the AI Dividend would come from taxes on AI usage in tokens, equity warrants allowing federal share purchases in major AI companies if their value spikes significantly, and tax reforms targeting incentives that prioritize capital investment over wages.
Bores’ framework suggests it might be easier to create protective policies before large-scale disruptions than redistributing economic gains afterward. “The AI Dividend can only succeed with immediate action,” the document reads. “Once a few companies have amassed vast wealth while displacing workers, opportunities for innovative policy diminish significantly. Securing stakes in these companies after they’ve reaped the benefits is far more challenging than establishing smart structures today as technology continues to evolve.”
Bores’ office did not respond immediately when approached by Decrypt for comment.