Issue AI automation eroding employment and the income tax base

Summary

The report suggests that as businesses automate cognitive tasks, several industries could be disrupted, and fewer people in work could reduce income tax receipts and weaken the tax base. It also raises the possibility that frontier AI will be used more to augment work through collaboration between AI and people inside firms rather than to automate fully. Roles built on repetitive tasks, such as in finance and insurance, are especially exposed to AI automation. The report stresses that monitoring how AI shapes employment trends is vital for understanding and mitigating these effects. Conversely, it argues that safe use of AI could boost efficiency and growth, raise tax revenues and improve work-life balance.