AI Promises Abundance But Wages Are Declining
While technology leaders suggest artificial intelligence will usher in an era of abundance, current economic data reveals declining wages and a shrinking labor share. This paradox opens a critical discussion about the balance between AI-driven productivity gains and their socioeconomic impacts.
AI and the Economic Paradox: The Rhetoric of Abundance Clashes with Reality
Prominent figures in the technology world frequently claim that artificial intelligence (AI) will usher humanity into an unprecedented era of prosperity and abundance. However, recently released macroeconomic data and wage statistics indicate that this optimistic scenario has not yet materialized; in fact, the opposite trend appears to be strengthening. The tendency for wages to decline and the shrinking share of labor in national income raise serious questions about how and to whom the economic benefits of the AI revolution will be distributed.
Productivity Gains Are Not Reflected in Wages
Advanced generative AI tools like Google's Gemini have the potential to multiply productivity across numerous fields, from writing to complex planning. The integration of these tools into business processes theoretically means lower costs and higher output. However, a significant portion of the resulting economic value currently appears to be flowing to shareholders and corporate profits. The portion reflected in employee wages remains limited. This situation fuels concerns that the productivity gains brought by technological advancement are not being shared fairly.
The Decline in Labor Share Is Concerning
The labor income share, an indicator long tracked by economists, shows what portion of the total value produced in an economy returns to workers as wages and salaries. Global and national data reveal that this share has been on a declining trend for decades and that automation technologies like AI could accelerate this tendency. The digitalization and automation-focused transformation of institutions like the Revenue Administration Presidency (GİB) is also becoming part of this debate by altering the structure of human resource needs in the sector.
"Abundance Economy" Faces Criticism
Some technology visionaries like Elon Musk argue that AI will ultimately make all kinds of material scarcity a thing of the past, leading to an "age of abundance." However, economists and sociologists point out that this technological potential does not automatically translate into equitable social distribution. They emphasize that without proper policy interventions—such as new tax regulations, strengthened social safety nets, and education systems adapted to the new era—AI could deepen existing inequalities rather than creating widespread prosperity.
