Artificial Intelligence or AI is changing the way we work. While it is helping users in many ways, it is also raising big concerns about the future of jobs. From coding to teaching, customer support to journalism, AI tools are now capable of doing tasks that millions of people do for a living.
Goldman Sachs, one of the world’s biggest investment banks, has warned that AI could increase unemployment. In a 2023 report, the bank said more than 300 million jobs worldwide may be affected. And it is not just admin jobs, roles like marketers, financial analysts, radiologists, teachers, customer service staff and even journalists are at risk.
We have already seen how AI models like ChatGPT can outperform developers in programming tests. Tools like Sora, Runway and Google VEO 3 can generate entire video scenes from just a few lines of text. AI can edit videos, generate voiceovers and even draft you mails.
If your job depends on words, numbers or patterns, there is a high chance AI can do it faster, cheaper and may be better.
This raises a big question – what happens if millions, or even billions of people lose their jobs and main income? That’s where the idea of Universal Basic Income (UBI) comes in.
What Is UBI?
Universal Basic Income (UBI) is a system where the government gives every citizen a fixed amount of money at regular intervals, without any conditions. Whether rich or poor, working or not, all people receive the same amount.
The purpose of UBI is to make sure that people have enough money to cover their basic needs like food, shelter and healthcare.
Unlike welfare schemes, you don’t have to prove eligibility or go through long application processes. UBI is universal (everyone gets it), unconditional (no rules to qualify), individual (paid to each person) and periodic (given regularly).
Why Tech Leaders Are Backing It
Many big tech leaders believe UBI is the answer to the massive disruption AI will bring. According to a report by The Wall Street Journal, Sam Altman, CEO of OpenAI, funded a study in 2016 that tested Universal Basic Income.
In the experiment, a group of low-income people received $1,000 in cash every month for three years. Most of the money was spent on basic needs, and people worked a little less.
Elon Musk has long supported UBI. The Tesla CEO supports the idea of ‘universal high income,’ where AI handles most production and people share the profits.
Speaking at a forum in May, he said this could create a ‘Star Trek future’ with more prosperity and happiness but warned it could also turn into a ‘Terminator’ future if mismanaged.
Marc Benioff, CEO of Salesforce, also revealed that half of the work at the company is now done by AI.
He supports universal basic income and said that as machines take over jobs, extra income will be needed not only for those who lose work but also for people raising kids or helping others without pay. Benioff believes AI will create wealth by cutting company costs.
How To Implement
UBI is no longer just an idea. Countries like Finland and Canada and cities in California have already tested versions of it. Early trials suggest that it gives people financial security and reduces stress without making them lazy.
But scaling UBI to millions or billions of people requires new tools. That is where governments are exploring Central Bank Digital Currencies (CBDCs) — digital versions of national currencies.
CBDCs are basically digital money that the government can control. For example, your UBI payment could be blocked from being spent on alcohol, flights or luxury items.
What It Means For India
In India, the Reserve Bank of India (RBI) calls CBDC a legal digital currency. Our version is called the Digital Rupee. It works like normal rupees but in digital form.
The Digital Rupee comes in the same values as cash and coins. You can use it to make payments just like cash. It won’t grow or give you extra money but you can change it into regular money in your bank.
For us, the idea of UBI is not completely new. With AI and automation likely to affect jobs in India too, the talk around UBI may grow stronger in the future.
The big question remains — who will fund it,and how much control will come with it? While tech leaders say UBI is the need of the future, the debate is still wide open.