AI has entered the workforce: tax tech profits, not people

The nature of work and welfare states requires fundamental redesign as artificial intelligence increasingly replaces human labor, according to a Nature article published online on June 16, 2026. Traditional welfare states rely on salary-linked taxation, a model that becomes unsustainable when machines perform tasks previously done by humans. This shift necessitates a re-evaluation of how societies fund public services and support their populations. The article suggests that taxing the profits generated by AI and automation, rather than the labor itself, could be a viable alternative. This approach would ensure that the economic benefits derived from AI are channeled back into society to support those displaced by technological unemployment. The transition poses significant challenges for governments and policymakers tasked with adapting existing social security systems and tax frameworks to a future where human employment may be significantly altered. The authors emphasize the urgency of addressing these issues to maintain social stability and economic equity in the face of rapid AI advancement.