
As AI systems continue to be adopted at scale, they are increasingly performing tasks carried out by human employees. From drafting documents, to writing code, to handling customer queries and concerns have grown about the economic risks this shift may pose, including job displacement and the erosion of the income taxes generated by human labour.
This rapid automation of roles raises difficult questions around labour displacement, reduction and redeployment. A direct economic consequence of this is the growing fiscal pressure that governments may face due to loss of income tax. This has renewed interest in proposals for a robot tax, alongside the emergence of AI policy research on alternatives such as token tax and FLOP tax, each targeting a different point in the AI value chain: labour displacement, AI-driven usage and compute power.








