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AI and the Fragile Social Contract

September 9, 2025

Artificial intelligence is not just another technological shift; it is a profound economic and social rupture. Unlike past waves of automation, where human labor migrated from one industry to another, AI is hollowing out entire categories of work simultaneously. Knowledge jobs once thought secure—lawyers, accountants, journalists, software engineers—are already being reshaped, compressed, or outright replaced. Service roles, from call centers to logistics, are undergoing the same disruption. What makes this moment different is the speed, scale, and universality: AI is not a sectoral revolution, it is an all-encompassing force.

This creates an existential challenge for the modern social order. For centuries, the legitimacy of states and societies has rested on a simple contract: those who work can provide for themselves, and those who cannot are temporarily assisted. But when technology can outperform human labor across both physical and cognitive domains, that foundation collapses. The link between productivity and wages—already weakened over decades of globalization—risks breaking entirely. Without intervention, societies may slide toward permanent underemployment, structural inequality, and mass disenfranchisement. The results are predictable: unrest, populist uprisings, and the unraveling of democratic institutions.

One solution stands out as both radical and necessary: a guaranteed minimum income. By decoupling survival from employment, it provides a buffer against technological displacement. It acknowledges that human worth is not reducible to market utility and creates the breathing room for people to reinvent themselves in a world where labor markets are volatile and shrinking. Experiments with universal basic income, though limited, consistently show improvements in health, stability, and community cohesion. Beyond economics, such programs can reduce the fertile ground for extremism and violence by giving citizens a stake in stability rather than chaos.

Opponents argue that guaranteed income breeds dependency, but this critique misunderstands the reality of the coming AI age. Dependency will no longer be a moral failing; it will be a systemic inevitability. The real question is whether dependency is structured through violent coercion and inequality, or through equitable redistribution and stability. If states fail to provide a floor under their citizens, the anger of the displaced will not remain passive. History shows us that when large swaths of people are excluded from economic participation, the result is not quiet resignation but revolt. AI makes this scenario more probable, not less.

The coming decade will determine whether AI ushers in a renaissance of human potential or an era of permanent instability. Guaranteed minimum income is not a utopian fantasy but a necessary insurance policy against collapse. Without it, the promise of AI—efficiency, abundance, and progress—will curdle into dystopia. With it, societies have a chance to reimagine purpose, creativity, and meaning beyond the constraints of wage labor. The stakes could not be higher.

Filed Under: Reports

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