Taxing artificial intelligence: What’s on the table, and what’s at stake

Artificial intelligence (AI) could raise productivity across a wide range of occupations and tasks. But it could also replace workers who currently perform some of those tasks. How many workers AI might replace, and how quickly, remains an open question.

These questions matter for the federal budget because the U.S. tax system relies heavily on income earned by workers. Individual income and payroll taxes generate roughly 85% of federal tax receipts.