Artificial intelligence and income inequality: Do technological changes and worker's position matter?

Abstract

The technological progress in artificial intelligence (AI) has led to mass unemployment and various types of inequalities in the recent years. This study is an attempt to see how income inequality has increased with the changes in technology. The study also investigated how technology such as AI has affected (directly or indirectly) to working position and working process of workers. Analysis of the study is based on the data of automation and Gini-coefficients. The study finds that the relationship between AI and income distribution has always been considered negative and this is what has been observed in this study and it directly affects the distribution of income and jobs. Due to the automation, low and medium skill jobs are declining, and unemployment is increasing, further the income gap between middle and high skill labor is increasing. Gini-coefficients of developing nations are higher than in developed nations, indicating that income inequality in developing nations is higher than the developed nations.