Subscriber OnlyLetter of the Day

How sustainable are public finances in an AI world?

Proactive planning today can help ensure economic stability, fairness, and social cohesion tomorrow

Letter of the Day
Letter of the Day

Sir, – As artificial intelligence continues to automate a growing share of work, it is timely to consider how public finances can remain sustainable in a future where income tax from human labour may no longer be the primary revenue source.

Our current funding model assumes widespread employment, an assumption that technological progress is already eroding. We should encourage the Government to begin an investigation into alternative approaches for funding public services, such as new forms of corporate, productivity, or capital-based taxation.

Proactive planning today can help ensure economic stability, fairness, and social cohesion tomorrow. − Yours, etc,

BRENDAN RYAN,

Lucan,

Dublin.