The International Monetary Fund (IMF) suggests that governments dealing with economic challenges brought about by artificial intelligence (AI) should look into implementing fiscal policies such as taxes on excessive profits or environmental taxes to offset the carbon emissions linked to AI.
The IMF highlights generative AI, which enables computer systems like ChatGPT to create human-like text, voice, and images from basic prompts, as a technology advancing rapidly and spreading at a swift pace compared to past innovations like the steam engine.
To address the impact on jobs due to AI, the IMF proposes policies like a carbon tax considering the environmental effects of operating AI servers. The IMF emphasizes the importance of taxing carbon emissions from AI servers to incorporate environmental costs into the technology’s price.
The IMF report released on Monday highlights the significance of taxing carbon emissions associated with AI servers due to their high energy consumption and the potential to impact data centers’ electricity use. Data centers, servers, and networks currently contribute up to 1.5% of global emissions, according to a recent report.
In addition, the report cautions that introducing AI could reduce wages, widen inequality, and empower tech giants to strengthen their market dominance and financial gains. It recommends higher taxes on capital income, including corporate taxes and personal income on dividends, interest, and capital gains, to address these challenges.
Furthermore, the report stresses the need for governments to prepare for the impact of AI on various job sectors, both white-collar and blue-collar, and suggests measures like extending unemployment insurance, targeted Social Security payments, and tailored education and training to equip workers with necessary skills.
To overhaul the tax system and introduce new taxes reflecting real-time market values, the IMF recommends leveraging AI’s analytical capabilities. While cautioning against universal basic income due to its high cost, the IMF suggests considering it if AI disrupts jobs significantly in the future.
Ella Dabra Norris, deputy director of the IMF’s Fiscal Affairs Department and co-author of the report, encourages countries to explore the design and implementation of systems like UBI if AI disruption intensifies.
Source: www.theguardian.com
