Carlos Cuerpo calls for new social contract to address AI impact

During the La Toja Forum, Spanish First Vice President and Minister of Economy Carlos Cuerpo discussed the economic implications of Artificial Intelligence. Cuerpo emphasized the need to draft a ‘new social contract’ to address the technological shifts affecting the global macroeconomy and labor markets.

Cuerpo highlighted risks regarding productivity and the potential for AI to widen economic disparities within Spain, noting the gap between advanced industrial clusters and regions with lower activity and wages. He advocated for supporting small and medium-sized enterprises (SMEs) and expanding capacity development centers nationwide to prevent further division.

Economist Diane Coyle, a professor at the University of Cambridge, noted that there is currently no widespread evidence of AI destroying jobs, suggesting there is time to prepare for its effects. Cuerpo also addressed the energy demands of data centers, stating that Spain should not export cheap energy only to have the resulting digital value leave the country.