The rapid growth of AI in recent years has captured global attention, eliciting both enthusiasm and criticism. AI is transforming the global economy, revolutionizing industries, and promising increased productivity and innovation. From automating routine tasks to enabling complex problem-solving, AI technologies have the potential to significantly boost efficiency and streamline operations across various sectors.
Investments in AI are surging at an unprecedented pace. Major tech giants like Microsoft and Meta, along with non-tech companies such as Walmart and General Motors, are pouring billions of dollars into developing advanced AI tools. This enthusiasm is mirrored by investors, who have injected a staggering $27.1 billion into U.S. artificial intelligence startups from April through June alone. Funding for AI startups made up nearly half of the total financing startups pulled in during that period.
However, as AI reshapes the economy, it also raises critical questions about its potential negative impacts on the future of work, including job displacement, economic inequality, and the need for worker retraining. Industries including banking, software development, customer service, and media and entertainment are already seeing massive changes to workflows due to the increased use of AI. Nearly half of all jobs are estimated to be exposed to some form of AI automation, leading to significant disruption and displacement of workers in the coming years. Women and communities of color are expected to face the most severe social and economic impacts.
Historically, technological advancements have disproportionately benefited high-skilled workers, potentially widening the income gap. Workers in lower-skilled positions might find themselves pushed into more manual and physically demanding roles, exacerbating existing economic inequalities. This echoes the Industrial Revolution when the Luddites protested against mechanization that threatened their livelihoods, a parallel to today’s concerns about AI-induced job displacement.
Despite these challenges, it is possible to envision a world where AI not only enhances productivity and fosters innovation, but also safeguards the quality, safety, and rights of workers. To realize this vision, several strategies must be implemented.
Policymakers can introduce regulations that promote workforce transition and ensure workers are protected in an evolving job market. There is currently no comprehensive federal legislation or regulation governing AI in the U.S., particularly when compared to the more advanced regulatory efforts taking place in the EU, such as the proposed AI Act; and while some federal laws address AI in the U.S., such as the Federal Aviation Administration Reauthorization Act, which includes provisions for AI in aviation, and the National AI Initiative Act of 2020, which expanded AI research and development, more comprehensive regulations are needed. These could include creating social safety nets and re-skilling programs to support displaced workers. Collaborating with educational institutions to develop curricula focused on AI skills can prepare workers for new roles, and funding re-skilling programs can help them transition into AI-related jobs.
However, policies alone cannot address the potential harms of AI. Business leaders and investors play a crucial role in implementing strategies to mitigate these risks—a central focus of the Business and Human Rights team at RFK Human Rights over the past year. By harnessing their network’s influence and collaborating with civil society advocates, the team is dedicated to ensuring the ethical development and deployment of technology, protecting human rights, and advancing social justice. Moreover, the team emphasizes the importance of integrating responsible technology practices into ESG frameworks, ensuring that AI ethics become a fundamental component of accountability and sustainability.
Investors can mitigate the adverse effects of AI on labor by promoting ethical AI development through their investment decisions. They can prioritize funding companies that adhere to ethical AI practices, ensuring transparency, fairness, and accountability. By directing investment dollars towards fund managers who support portfolio companies using AI for social good and deploying ethical AI tools and services, investors can help address global challenges such as healthcare, education, and environmental sustainability. Additionally, investors can advocate for regulations that protect workers’ rights and promote inclusive economic growth.
Businesses should revisit their social responsibility programs, which have historically supported initiatives to create a more just and inclusive world, to ensure they actively address the risks and challenges posed by AI. By providing support for displaced workers, these departments can ensure a more equitable transition. Allocating resources to educational programs that train workers for AI-related jobs can facilitate smoother transitions, and partnerships with universities and training centers to develop relevant curricula are essential for preparing the future workforce.
As AI continues to transform the labor market, addressing the accompanying challenges is imperative. By promoting ethical AI development, supporting workforce transition, and advocating for inclusive policies, investors, corporations, and policymakers can play a pivotal role in ensuring that the benefits of AI are shared widely and equitably.