A recent report from the Economic Policy Institute (EPI) suggests that the primary threat posed by artificial intelligence (AI) may not be to employment and wages directly. Instead, it indicates that the real danger could stem from an extreme imbalance of power between employers and typical workers, a situation which has already contributed to increased inequality and sluggish wage growth.

The EPI press release counters the widely held belief that technological advancements are primarily responsible for inequality and slow wage growth. The report argues that there is no concrete evidence to substantiate these claims. Instead, it attributes these issues to the decline of unions, the erosion of the federal minimum wage, and changes in macroeconomic policy priorities.

Josh Bivens, EPI’s chief economist and co-author of the report, stated in the press release: "Efforts to blame inequality and unemployment on technology conveniently divert attention from the real cause of rising inequality and weak wage growth: policy failures, including those failing to check excess employer power. The best ‘AI policy’ is boosting workers’ power by improving social insurance systems, removing barriers to organizing unions, and sustaining lower rates of unemployment."

The press release also highlights that while AI could potentially be used by employers as a tool to tighten control over work intensity and wages, it could also be leveraged to boost productivity while increasing workers’ wages. Ultimately, how employers utilize AI will be determined by the balance of power.

Ben Zipperer, EPI senior economist and co-author of the report, said in the press release: "Outcomes for workers will not improve unless policymakers get the story right on technology, inequality, and labor market dysfunction. Policymakers should focus on bolstering workers’ leverage in the labor market to claim any potential gains spurred by AI in the future and to reclaim lost ground from past periods of economic growth."