Abstract

In the 21st century more and more industries are starting to shift towards a more efficient way of running companies, this is mainly done through technological advancement, more specifically through artificial intelligence (AI). This essay explores whether the continuous evolution of AI exacerbates or reduces income inequality among people. In order to answer this question, this essay addresses the influence of AI on distinct groups of people. For example, why high-skilled workers are greatly benefited by AI whereas lower-skilled workers are negatively affected. Furthermore, the essay explores the effect Ai has on developing countries as well as developed countries and the extent to which it worsens income inequality in between countries. The essay also introduces a case study on the effect that AI has already had on the economy and on the workforce in the technological sector of the economy. Through policies and economic theory, the essay explores a way of approaching and fixing AI-induced unemployment.

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