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 systems, heavily reliant on income tax derived from salaries, face obsolescence as AI-driven automation reduces the need for human workers. This shift necessitates a re-evaluation of how public services are funded and how economic security is provided to citizens. The article suggests that instead of taxing individuals, governments should consider taxing the profits generated by AI and automation technologies. This approach could create a new revenue stream to support social programs and address potential widespread unemployment. The authors propose that this tax reform is crucial for maintaining social stability and ensuring equitable distribution of wealth in an AI-integrated economy. Without such adjustments, existing welfare models are unlikely to remain sustainable.