Bill Gates backs AI tax, jobs reserved for humans

Bill Gates wants governments to tax AI tokens and robots, keep some work in human hands and create national and international bodies to manage the disruption he expects from automation.

In an essay published on Gates Notes on Wednesday, 26 August, the Microsoft Corp. co-founder argued that AI differs from earlier technologies because it can replace human cognition and spread through devices people already use.

“AI will either be the greatest equalizer ever invented, or the worst source of injustice,” Gates wrote.

He identified three broad risks: AI could eliminate jobs permanently; give criminals and governments more powerful tools for cyberattacks, fraud and bioterrorism; and weaken children’s development and human relationships through excessive reliance on AI companions.

Entry- and mid-level workers face the greatest immediate danger, he said. Sales, customer support, software engineering and paralegal work may come under early pressure, followed by physical jobs as robotics improves. Gates expects robots to begin competing with people in construction and hospitality by the end of the decade.

He argued that many of those jobs may not return when the economy improves because AI, unlike a recession, represents a structural change in how work is performed.

One response would be to designate certain jobs or tasks as “Human Reserved,” even when machines could perform them. Gates compared the idea with nature reserves, where societies choose not to develop land because something valuable would be lost.

He cited the caregivers who looked after his father during the later stages of Alzheimer’s disease. “No robot could or should have done it,” Gates wrote.

Some protections could be permanent, while others might slow the introduction of automation for workers who cannot easily retrain. In education and mental health care, Gates envisaged people remaining in charge while using AI to extend what they can do.

He also renewed a proposal he first made in 2017 to tax robots, extending it to AI tokens, the units models process when responding to users.

He argued that the tax system favors automation because employers pay payroll taxes for workers but can often treat robots as deductible business expenses. The revenue could fund retraining and stronger support for displaced workers.

Gates also called on countries to establish bodies that can coordinate AI policy across employment, taxation, education, security, energy and health. A separate international organization would be needed to manage risks that cross borders, requiring some cooperation between the US and China.

Despite the warnings, Gates said AI could substantially improve healthcare, agriculture, education, scientific research and government services, particularly if poorer countries and communities gain access to the technology.

“The world needs a plan,” Gates wrote, arguing that governments should act before unemployment rises sharply and public trust deteriorates, rather than waiting for disruption to force a response.