AI and automation risks to democracy and equality

Nobel laureate Daron Acemoğlu and his colleagues have raised concerns regarding the impact of artificial intelligence and automation on democracy and socioeconomic equality.

In a research paper titled ‘Automation and Repression’, Acemoğlu, A. Arda Gitmez, and Mehdi Shadmehr utilize mathematical modeling to suggest that as robotics and AI replace human labor, the concentration of national income in capital increases while labor’s share shrinks. This shift may lead to unsustainable inequality, potentially forcing states to choose between regulating automation, implementing redistribution, or financing political repression to manage social unrest.

In subsequent commentary, Acemoğlu warned that the current trajectory of AI development is “top-down and undemocratic,” noting that the public is largely excluded from decisions regarding its direction. He argued that unlike historical technological shifts that boosted employment and wages, the modern automation-heavy model reduces labor demand for blue-collar workers and risks exacerbating economic inequality if not redirected toward shared prosperity.