IMF Report
"Concerns Over AI Expanding Social Inequality and Reducing Employment"
The International Monetary Fund (IMF) has suggested that a carbon tax should be considered for artificial intelligence (AI), which consumes a high amount of electricity. It also argued that in the AI era, social inequality may widen, necessitating increases in corporate tax and personal income tax on capital gains.
On the 17th (local time), the IMF stated in a report titled "Expanding the Benefits of Generative AI: The Role of Fiscal Policy," "Considering the large amount of energy consumed by AI servers, imposing a tax on related carbon emissions is a good way to reflect external environmental costs in the price of the technology."
According to the report, data centers, servers, and data transmission networks account for 1.5% of global carbon emissions. Currently, AI accounts for less than half of the power consumption in data centers, but as AI adoption accelerates, it is expected to become a major consumer, significantly increasing overall electricity usage.
The IMF said, "Unlike previous technological innovations such as the steam engine, AI can spread much faster, and technological advancements are also occurring at an incredibly rapid pace," adding, "Governments facing economic upheaval caused by AI should consider fiscal policies including taxes on excess profits corresponding to AI-related carbon emissions and green levies."
The IMF also warned that AI could exacerbate social inequality and proposed raising corporate taxes and personal income taxes on capital gains such as interest and dividends. However, it opposed taxation on AI investments.
The IMF emphasized, "To achieve more effective taxation of capital income, it is necessary to restore corporate taxes, implement well-designed excess profit taxes, increase personal income taxes through enhanced automatic exchange of information between countries, and strengthen taxation on capital gains."
It also argued that various policies are needed to mitigate employment damage as AI could replace human jobs. According to the IMF, AI is expected to significantly impact the reduction of office jobs such as legal, financial, and medical professions, and also affect blue-collar jobs related to manufacturing and trade. The IMF's analysis shows that 60% of jobs in advanced countries such as the United States and the United Kingdom are exposed to AI risk, with half of those expected to be negatively affected.
The IMF pointed out, "Automation that saves labor can greatly reduce employment in both low-skilled jobs and those requiring high cognitive abilities," adding, "While productivity gains related to AI can create new jobs, such transitions may come at a high cost." It suggested expanding unemployment insurance for self-employed workers, providing social benefits to workers displaced by AI, and expanding education and training related to AI technology as alternatives.
Regarding the introduction of universal basic income, the IMF expressed a negative view, stating that providing the same benefits to high-income groups could deepen social inequality and entail significant fiscal costs.
Era Dabla Norris, IMF Deputy Director for Fiscal Affairs, emphasized, "Considering the uncertainty about the future of AI, governments must adopt an agile approach to prepare for highly disruptive scenarios," and added, "As AI spreads globally, strengthening international cooperation will become more important than ever."
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