Are Cloud and AI driving the need for Universal Basic Income?

I keep hearing the words Universal Basic Income (UBI) across many social and blog networks. This has led me to think: Why not try to explain the concept to those of us who wish to learn more? here goes: Grab your cup of tea or coffee and read on.

Close your eyes for a second; now let me take you on a journey we have seen beginning.

  • Transportation in London is now using Artificial intelligence avatars and text-to-speech services to read out arrival and departure times.
  • Yum brands, including KFC, Pizza Hut, Taco Bell, and others, are now rolling out voice AI ordering at all of its drive-throughs. This means that the voice services are capturing the orders and managing the front-of-house ordering process.
  • Elon Musk has said that the Tesla Robot Optimus will target general availability by 2026. These humanoid robots will be able to complete many tasks and take manual labour away from homes and businesses. (sign me up)
  • Robot Chefs: From burger flipping to adding that slice of cheese, robot chefs are already here and will only get better as they progress into the more complicated restaurant tasks.
    The rise and rise of voice! My children say, “Alexa, what is the capital of Peru?” smart devices are unlocking knowledge on demand and bridging cultural divides using instant translation services, no more struggling to speak another language.
  • Workforce deskilling: as discussed in a previous blog, we are going to see AI take more of a lead in many knowledge worker tasks.

What does all this mean? This means that, unlike any other period in time, including the Italian Renaissance, Industrial Revolution, and electrification of factories, we are about to see humankind’s greatest achievement (or peril).

Disruption will be on an unimaginable scale. No one will be safe from the automation of systems, labour, and work as we know it. This will be no Guttenberg press providing information to the masses; this will be the essence of humanity that is captured and industrialised.

Cloud Systems, bolstered by advanced connectivity with predictive Quantum clusters, learning from every snippet of interaction, every right and wrong answer. Like a vine in my garden that I thought I could control, that’s now climbing up the wall spreading and getting larger and more woven into the fabric of life. Was that a bit dramatic? or a justified description? I’m afraid we won’t know now, time will show this.

How do we protect society against the rise of robotics and AI?

Universal Basic Income?

Universal basic income, or UBI, is a scheme that gives everyone a regular payment unconditionally. These payments should not be token-based or subject to rationing, as the UK did after or during the Second World War.

Is this a workable utopia?

In the following paragraphs I am going to give examples and parallels to help explain the concept further.

The Global Pandemic & the UK Government Furlough Scheme

This was a scary time for everyone, I remember the need to shut down core parts of the company and the worries about payroll, coupled with daily news about big brands failing.
At the start, I remember hearing about a German government scheme that would cover the salaries of workers. Then rumours surfaced that the UK was going to implement something called “Furlough.”

A furlough is a temporary leave of absence from work Imposed by an employer due to the special needs of a company or employer, which may be due to economic conditions at the specific employer or in the economy as a whole. During a furlough, employees are not paid but retain their employment rights and benefits.

This description was my first impression of ‘Furlough’, but clarity was finally given regarding where Employers would, in fact, be paid under this scheme. Whilst not the panacea of UBI, it was a big step towards it during a time of crisis.

The similarities with UBI are:

Both provide financial support during times of crisis.
Both aim to maintain economic stability and individual well-being.

However, key differences exist:

UBI is universal and permanent, while the furlough scheme was temporary and linked to employment.

UBI is unconditional, whereas the furlough scheme was tied to specific circumstances.
The Furlough scheme is a fantastic example of what a government could or may provide to its people under a UBI model.

Great, how do we pay for it?

Unlike the furlough scheme, UBI would be permanent. I will look at a few models and examples of UBI schemes that are under trial, failed, or implemented.

  • Increased income taxes, new wealth taxes, value-added taxes (VAT), or carbon taxes.
  • Build out Sovereign wealth funds, digital services taxes, or financial transaction taxes.
  • Robot tax: like an employee today, the use of robots could be subject to full taxation and national insurance.
  • AI metering: could we use metering such as the 95th percentile method to measure AI outputs?
  • A displacement tax, an example being delivery robots being subject to a one-off job displacement tax, therefore requiring investment up-front before deployment.

UBI “in the wild” worldwide examples

Below you will find a number of case studies that I looked at to help the reader understand the UBI successes and failures.

Finland’s UBI Experiment

Back in 2017, Finland decided to try something pretty wild. They picked 2,000 unemployed people and said, “Hey, here’s €560 a month. No catches. Keep it even if you get a job.” It was a two-year experiment to see what would happen with a Universal Basic Income (UBI).

With AI and robots potentially taking over jobs left and right, Finland wanted to see if giving people a safety net would help them take risks, like accepting low-paid work or starting a business.

So, what happened?

Well, it didn’t exactly send everyone rushing into new jobs. But something interesting did occur. People felt… better. They were less stressed, more satisfied with life, and felt more in control of their situation.

The experiment was short and brief, and left us with many questions as answers, but it does provide us with a look at one possible future. A future that highlights how we’ve found a way to work with AI instead of competing against it.

So, what do you think? Is UBI the solution to our AI anxieties? The debate’s far from over, but one thing’s for sure – as our tech gets smarter, we’re going to need some pretty creative solutions to keep up.

Alaska’s “Free Money” Experiment

So, you think Finland’s experiment was wild? Alaska’s been handing out cash to its residents since 1982. Yep, you heard that right – for over 40 years!

Alaska’s sitting on a whole lot of oil. Instead of letting all that money line the pockets of big corporations or disappear into government coffers, they decided to share the wealth in a scheme called Permanent Fund Dividend (PFD).

Every year, Alaskans get a check just for, well, being Alaskan, it’s like a birthday present from Mother Nature herself. In 2023, each resident pocketed a cool $1,312. Now, before you start packing your bags for the Last Frontier, let’s break this down a bit:

The amount changes every year. Sometimes it’s higher, sometimes lower. It all depends on how well the oil market’s doing.

It’s not meant to cover all your living expenses. It’s more of a nice bonus to help with bills, save for college, or maybe splurge on that new iPhone.

But here’s where it gets really interesting: This “Alaska model” has actually done some pretty cool things. It’s helped reduce poverty, narrowed the gap between rich and poor, and generally made Alaskans a bit more financially secure. It’s not perfect, of course. Critics worry it might make people lazy or that the money could be better spent on public services. But overall, people are pretty happy with the yearly payday.

Ontario’s UBI Rollercoaster

Finland and Alaska aren’t the only places where the experiment has been put into play. In 2017, Ontario, Canada, decided to take a page out of Finland’s book and try their own UBI experiment. But it didn’t go according to plan…

4,000 people in places like Hamilton and Thunder Bay would get a guaranteed income.
Single folks would get up to $16,989 a year, while couples could score up to $24,027.
The plan was to run for three years and see how it affected things like health, education, and employment.

Just as the experiment was getting off the ground, Ontario had an election and shut it down due to high costs. Not only did this fuel outrage but it meant that we’ll never really know if it would’ve worked. The experiment was cut short before we could get any solid data.

Even in its short life, the program seemed to be doing some good. People reported feeling more financially stable and just… happier. Some people were using the money to go back to school or start small businesses.

In the end, Ontario’s experiment leaves us with a big “what if.” As we keep wrestling with questions about AI, job security, and the future of work, stories like this remind us that finding solutions isn’t always straightforward. But hey, at least we’re trying, right?

UK Examples of Universal Basic Income (UBI) Programs

England’s £1,600 UBI Trial

In 2023, the UK government started its first universal basic income trial by giving £1,600 per month to 30 people in central Jarrow, North-East England, and East Finchley, North London.

This is a two-year pilot; there are stated aims, but to predict outcomes wouldn’t add to this blog. We will update you when more is published.

Wales Income Pilot for Welsh Care Leavers

In 2022, the Welsh Government’s basic income pilot targets young people leaving the care system. It provides 500 care leavers (Available for those leaving care who are turning 18 years of age between 1 July 2022 and 30 June 2023) with a cash payment of £1,600 per month (£1,280, after-tax) for two years to support their transition to adulthood.

Conclusion

Thanks for reading until the end of my blog. As we automate more functions, both manual and knowledge-based, we need to uphold the very fabric of society. Whether UBI or maybe Universal Basic Services (UBS) which instead of providing cash transfers, UBS focuses on guaranteeing access to essential services such as healthcare, education, housing, and transportation – we will need something to help sustain society as things change.

As the CEO of Disruptive LIVE, Kate has a demonstrated track record of driving business growth and innovation. With over 10 years of experience in the tech industry, I have honed my skills in marketing, customer experience, and operations management.

As a forward-thinking leader, I am passionate about helping businesses leverage technology to stay ahead of the competition and exceed customer expectations. I am always excited to connect with like-minded professionals to discuss industry trends, best practices, and new opportunities.