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AI and Income Distribution

In: The Economics of Globalization and Artificial Intelligence

Author

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  • Nicola Acocella

    (Sapienza University of Rome)

Abstract

Theoretical and empirical work in economics suggest that commercial deployment of AI can amplify the inequality between nations, as the ability to harness AI’s benefits theoretical and early empirical work in economics suggest that commercial deployment of advanced AI can impact significantly economic inequality. AI could also widen income disparities within countries, benefitting highly skilled workers, displacing lower-skilled jobs in repetitive tasks, and concentrating wealth among those who control the technology. There is also a third risk, that of AI deployment: ‘while AI may fuel within-country inequality, it could also slow or reverse the gains made in reducing between-country inequality. Without targeted policy interventions, AI may deepen the global divide, advancing richer nations while leaving poorer ones further behind, hindering progress towards the Sustainable Development Goals.’ AI has a high impact on firms’ strategies and life. It can enhance and augment what enterprises can do and is doing things that have never been done before, rather than simply automating or accelerating existing capabilities. Some of the strategic options that emerge won’t match past experience or gut feelings.

Suggested Citation

  • Nicola Acocella, 2026. "AI and Income Distribution," Springer Books, in: The Economics of Globalization and Artificial Intelligence, chapter 0, pages 59-74, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-15711-9_3
    DOI: 10.1007/978-3-032-15711-9_3
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