Summary
A report suggests that artificial intelligence (AI) could negatively affect Social Security finances by reducing the number of workers contributing payroll taxes. Fewer people working means less tax revenue for Social Security, which might speed up when its funds run out. Experts are considering solutions, but no laws have yet been made to address AI's impact on the system.
Key Facts
- Social Security is mainly funded by payroll taxes from workers and employers.
- AI could replace jobs, which would reduce the number of people paying into Social Security.
- The Social Security trust fund might be empty by 2033 without changes in funding.
- Machines might take over many administrative and mid-level jobs, reducing employment.
- A study shows up to 30% of work hours could be automated by 2030.
- If fewer people work, Social Security will collect less money, potentially worsening its deficit.
- There is discussion about increasing payroll taxes or finding other funding sources, but no new laws have been made yet.
