Abstract

This article looks at the impact of the continuous evolution of Artificial Intelligence (AI) on income distribution and inequality among different socioeconomic groups, by providing empirical evidence and comparing historical trends. Economists often consider the advancement of technology as a substantial driver for economic growth as it increases the productivity, GDP, and living standards of people. Nevertheless, studies have found that historical technological breakthroughs often resulted in a more unequal income distribution in the short run. This essay supports this idea with instances. Yet, it views the debate more as how the government should facilitate the redistribution of income through effective policies to empower socioeconomic groups, who are less-privileged in the market allocation mechanism, and promote a more equitable distribution of income in the long run.

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