Microsoft co-founder Bill Gates has called on governments around the world to take urgent steps to manage the economic and social disruption that could result from the rapid development of artificial intelligence (AI).
Gates warned that AI could become a powerful tool for reducing inequality and improving lives, but could also deepen existing economic disparities if its benefits are concentrated among wealthy individuals, companies and countries.
In a roughly 6,000-word essay published on his Gates Notes website, Gates outlined his concerns about the speed at which AI could transform the labour market and proposed measures he believes could help societies manage the transition.
One of his major proposals is the introduction of a new tax on AI, which he refers to as a “token tax.”
Gates argued that existing tax systems can inadvertently encourage companies to replace human workers with machines because employers typically pay payroll taxes on human employees, while AI systems can be treated as business expenses.
“The tax system nudges you toward replacing people with machines,” he said.
According to Gates, an AI-specific tax, alongside his previously proposed tax on robots, could help slow the pace of job displacement while generating revenue that could be used to retrain workers and strengthen social safety nets.
He said such a system could be designed to avoid discouraging beneficial uses of AI, particularly in areas such as healthcare and education, where the technology could potentially reduce costs and expand access to essential services.
Gates Proposes “Human Reserved” Jobs
Another key proposal is the creation of “Human Reserved” jobs — roles that would deliberately remain exclusively or primarily human even when machines become technically capable of performing them.
Gates argued that some jobs may need to be protected from automation for economic and social reasons, particularly where replacing large numbers of workers could cause severe disruption.
“We might set something aside as Human Reserved for economic reasons,” he said.
He gave the example of older workers whose careers are heavily tied to particular industries, arguing that it would be unrealistic to expect someone who had spent decades working in construction, for instance, to easily transition into an entirely different profession.
Gates also believes some jobs should remain human for reasons beyond economics, particularly occupations involving care, empathy and deeply personal interactions.
Using his own family experience, Gates recalled that his father received round-the-clock care before his death from Alzheimer’s disease in 2020.
“Something in the care they gave my dad was irreplaceably human,” Gates wrote, arguing that certain aspects of human care should not be handed over to machines simply because technology makes it possible.
He similarly questioned whether highly sensitive interactions in healthcare should be automated, noting that while a robot could technically deliver difficult medical news to a patient, that does not necessarily mean it should.
AI Could Transform Jobs Faster Than Previous Technologies
Gates’ concerns come amid growing warnings about the potential impact of AI on employment.
He noted that AI could bring disruption much faster than previous technological transformations. Unlike the personal computer, which took decades to fundamentally reshape workplaces, AI can be integrated rapidly into existing computers, smartphones, software platforms and business systems.
As a result, Gates expects many entry-level and mid-level positions to be affected before workers, educational institutions and governments have sufficient time to adapt.
He is particularly concerned about younger workers entering the labour market. If AI takes over many entry-level tasks, he warned, there could be fewer opportunities for young people to gain the experience traditionally required to advance into higher-level positions.
Gates expects significant disruption across sectors including medicine, law, middle management and manufacturing over the next decade, alongside areas such as sales, customer service and software engineering that are already experiencing the effects of AI.
Gates Warns of Growing Inequality
Despite his concerns, Gates remains optimistic about AI’s potential to transform areas such as healthcare, education, agriculture, scientific research, government services and small businesses.
His primary concern, however, is how the benefits and costs of the technology will be distributed.
He warned that individuals and countries that already possess significant wealth, technological capabilities and political influence could capture most of the economic benefits of AI, while vulnerable communities and displaced workers bear much of the disruption.
Gates believes governments should intervene before the effects become too difficult to manage rather than leaving the transition entirely to market forces.
“If the world takes the right steps, AI will be a force for good and leave everyone better off,” he argued.
Calls for a Global Framework
To prepare for the transition, Gates proposed the creation of new national and international institutions dedicated to managing the effects of AI.
He also called for the establishment of “Human Reserved” positions where appropriate and changes to tax policies so companies are not financially encouraged to replace human workers with AI and robotics.
However, Gates acknowledged that determining which jobs should remain exclusively human would be challenging.
He noted that robots could eventually become capable of constructing houses, for example, but said society would still have to consider the consequences for skilled construction workers.
Similarly, while AI may be able to deliver information efficiently, Gates argued that this does not automatically mean teachers should be replaced, given the role educators play in providing motivation, empathy and personal support.
His broader argument is that technical capability should not automatically determine what society chooses to automate.
Gates said the chances of a net-negative outcome from the AI transition are currently “very high” if technological development continues to move faster than governments, workers and institutions can adapt.
He therefore called for what he described as an “unprecedented global response” to the challenges posed by the technology.
Gates said the development of a framework for managing AI’s transition should involve elected officials, policymakers, educators, healthcare workers, local authorities and community leaders.
According to him, the objective should not be to stop technological progress, but to ensure that AI’s benefits are broadly shared while protecting workers and communities from the most disruptive consequences of rapid automation.