Nobel Laureate Simon Johnson Warns AI Could Widen Inequality Without Pro-Worker Policies

Nobel Prize-winning economist Simon Johnson issued a stark warning about artificial intelligence’s potential to destabilize labor markets and deepen global inequality during a recent interview, urging policymakers and tech developers to prioritize “pro-worker” innovations that empower rather than replace human labor.

Economist Simon Johnson

Johnson, an MIT professor and co-recipient of the 2024 Nobel Prize in Economic Sciences, emphasized that AI’s trajectory hinges on deliberate choices — not inevitability. “Will AI raise productivity and wages for everyone, or will it hollow out the middle class by automating jobs?” he asked, framing the debate central to his recent book Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity, co-authored with Daron Acemoglu.

Drawing parallels to the Industrial Revolution, Johnson noted that while past technologies like steam engines replaced physical labor, modern AI targets “mental labor” — customer service, language tasks, and office work. He cited self-checkout machines as a contemporary example: “When you transfer work to customers without raising wages, you’re not creating shared prosperity — you’re eroding it.”

The economist criticized the concentration of AI development within a “few men in big tech companies,” warning that their profit-driven priorities risk sidelining broader societal needs. “If we let Silicon Valley’s vision dominate, we’ll get tools that serve capital, not workers,” he said.

Johnson advocates for global “buying coalitions” to steer innovation toward equitable outcomes. By uniting markets — such as smallholder farmers or low-wage workers — communities could incentivize tech firms to build solutions that enhance, rather than replace, human labor. “Market power gets capitalists’ attention,” he said, stressing partnerships over top-down mandates.

His concerns extend beyond economics to democracy itself. “When technology empowers elites to surveil and suppress workers, inequality worsens,” Johnson said, referencing rising authoritarianism and weakened labor unions. He praised recent U.S. labor organizing efforts but warned that without systemic reforms, AI could further entrench corporate control.

Despite challenges, Johnson remains cautiously optimistic. At MIT, he leads initiatives connecting students with global entrepreneurs to co-design inclusive technologies. “Democracy delivers when it creates good jobs,” he said. “Pro-worker AI isn’t a slogan — it’s a roadmap for ensuring technology lifts everyone.”