Steering the AI Transition: The Case for More Employee Ownership

New employee-ownership models might save us from AI-induced mass inequality

Abstract

As artificial intelligence (AI) continues its rapid advancement, its impact on employment and economic equity emerges as a critical area of concern. This commentary explores how new models of employee ownership could potentially mitigate the adverse effects of AI-induced job displacement and wage deflation. Current discourse on AI often focuses on existential risks, yet the immediate challenge is the technology's capacity to automate complex, knowledge-based tasks that were once considered secure. Drawing from personal experiences as an AI advisor and a review of current business practices, I argue that the deflating effect of AI on employment is an urgent issue that requires innovative policy responses. Employee Ownership Trusts (EOTs) are examined as a promising solution that enables workers to gain from AI-generated productivity increases. By analyzing data from the adoption of EOTs in the UK and their burgeoning popularity in North America, this commentary illustrates how broad-based employee ownership can serve as an effective hedge against the economic disruptions posed by AI.