Book

Taxing Artificial Intelligence

2024

Synopsis

Taxing Artificial Intelligence by Swiss law professor Xavier Oberson addresses the complex fiscal and socio-economic challenges arising from the rapid integration of artificial intelligence and automation into the global economy. Building on the foundational ideas of his earlier work, Taxing Robots, Oberson examines how widespread job displacement caused by autonomous systems threatens traditional government revenue streams—primarily income taxes and social security contributions derived from human labor. The book serves as both a legal analysis and a practical roadmap, evaluating how modern tax policy must evolve to finance social safety nets and mitigate rising economic inequality as AI transforms the workforce.

To build a framework for policy reform, Oberson explores the legal definition of AI and tackles the provocative question of whether highly autonomous AI systems should eventually be recognized as distinct legal entities with their own capacity to pay taxes. He compares short-term approaches—such as levying indirect automation taxes on corporate income based on hypothetical human wages or applying value-added tax (VAT) to AI-driven services—with forward-looking models that grant direct tax status to AI units possessing sufficient autonomy, independent capital, and identifiable operations. He carefully balances these tax proposals against the need to avoid stifling technological innovation or violating existing international tax treaties.

Ultimately, the book offers a visionary yet pragmatic perspective on how governments can proactively manage the Fourth Industrial Revolution. Oberson outlines concrete mechanisms for redirecting AI-generated revenue toward retraining programs, funding social security systems, and potentially underwriting universal basic income. The text provides legal scholars, policymakers, and economists with a comprehensive blueprint for adapting tax structures before AI-driven labor disruption destabilizes public finances.

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