Rajan Proposes AI Tax as Firms Confront Potential Job Losses

Raghuram Rajan says computers using artificial intelligence may replace some work done by people.

He says nobody knows exactly how quickly this will happen or which jobs will be affected most.

Rajan suggests that companies could pay a small tax when they use AI.

This could make hiring people and using machines more evenly treated by the tax system.

He also believes AI might create new jobs and help workers do more complicated tasks.

Lower costs could let businesses sell more and hire more people.

Rajan says companies should retrain workers whose jobs change.

Governments could encourage this training with tax credits.

He says businesses that support workers may attract better employees.