Andrew Yang warns AI job losses to hit millions, urges global tech tax
NEW JERSEY, UNITED STATES — Former United States Democratic presidential candidate Andrew Yang warned that artificial intelligence (AI) will eliminate millions of American jobs within the next year and proposed tax reforms to address the widespread displacement.
Speaking with CNBC TV after attending an industry conference, Yang said developers had demonstrated technology advancing at an unprecedented rate.
The impact of AI on tech and entry-level jobs
Recent reports cited by CNN estimate that AI can currently replace 11.7% of the United States workforce, with companies such as Amazon and Meta conducting AI-related layoffs totaling approximately 1 million. Moreover, another McKinsey Global Institute report noted that 40% of American jobs will be displaced by AI by 2030.
Yang noted that one autonomous coding company serving enterprise clients saw its revenue increase 100-fold in the past year, directly threatening technology sector employment, where computer science graduates now face hiring freezes.
Yang cited Anthropic Chief Executive Officer (CEO) Dario Amodei‘s projection that up to 50% of entry-level white-collar positions will be automated within the next several years. Currently, unemployment rates for college graduates match or exceed those for non-college graduates for the first time in history.
“I believe him. The easiest people to fire are the people you haven’t hired yet, which, again, is why you see the hiring of recent college graduates heading down. And the underemployment rate, over 50%,” Yang told CNBC TV.
He warns, “There’s still over 2 million Americans who work at call centers right now. And we know AI is going to decimate that job.”
Yang references Jamie Dimon, CEO of JPMorgan Chase & Chase, with his recent perspective on the rise of autonomous trucking that Yang says threatens the most common job in 28 states and risks provoking “riots in the streets” as millions of middle-aged men, 10 to 15% of whom are military veterans, could see their six-figure incomes vanish overnight.
Proposing an AI tech tax to combat unemployment
Yang proposed restructuring tax policy by shifting taxes away from labor and onto automation agents instead. He has since renewed his push for an AI tax, citing Amodei’s suggestion that AI firms should be taxed to fund programs such as a universal basic income.
He pointed out that financial technology firm Block recently laid off 40% of its employees, and its stock shot up 24%, which serves as an example of Wall Street’s optimistic attitude toward AI-driven layoffs now being implemented by smart CEOs.
AI safety and research firm Anthropic is already facing legal friction with the Pentagon over the government’s use of its technology, and Yang says a settlement is imminent before a formal determination is issued.
Lastly, regarding corporate integration of AI tools, he warns that “Every company that doesn’t adopt it is going to be seen as backward and retro in a very short period of time.”
