Gates Warns AI Will Gut Jobs, Urges Taxes

Gates Warns AI Will Gut Jobs, Urges Taxes

The News

Bill Gates says artificial intelligence is far more dangerous than the tech industry will admit, and he is calling on governments to tax AI use and to reserve some jobs for humans by law.

The Microsoft founder laid out the argument Wednesday in a blog post on Gates Notes — a roughly 6,000-word essay, according to the Financial Times — and in interviews with Semafor and The New York Times.

He told Semafor the technology has crossed dangerous thresholds in biology, cybersecurity, white-collar work and human relationships, and that the response from government and tech leaders has been non-existent.

"I am in a state of shock that I'm sort of the first one saying, 'This is crazy. This is insane,'" Gates said. "I'm just deafened by the silence."

What Gates Is Warning About

Gates predicts an economy with "far fewer" jobs than exist today. It is a reversal from three years ago, when he wrote that the coming "bumpy" AI job disruption would be "manageable."

What worries him now is not speed but scope. "There isn't a job that isn't affected," he told Semafor, predicting that in most occupations humans will eventually be "vastly inferior to the AI doing the job."

"It's different not because the speed is different, but the breadth is what makes it utterly, utterly a unique moment in evolutionary history," he said.

He also warned about bioterrorism. "I wrote a whole book about how to avoid the next pandemic," Gates said. "The bioterrorism risk is 50 times the natural pandemic risk now."

The New York Times, which interviewed him for an hour, reported he believes his industry is downplaying risks that include mass unemployment and bioterrorism. The Financial Times said the essay warns the technology will usher in "one of the most turbulent times in human history."

His Fixes

Gates floated government mandates designating certain occupations or services as "human reserved" — work that stays with people even if machines could do it more cheaply. "So what if we declare something human-reserved that we shouldn't?" he said. "The capitalistic signals are here to serve humans."

He also proposed taxing AI compute tokens and robots. A usage tax, he argued, would directly change a company's incentive to replace workers, unlike a corporate tax that only captures profits. Labor is already taxed through payroll levies, he noted, while robots can be depreciated and carry no Social Security tax.

"Today, we are very pro-robot in our tax policies, and I'm saying I think that's a mistake," Gates said.

He ruled out philanthropy as the answer, including his own. "Government is 20 times bigger than all philanthropy, so no, philanthropy cannot solve the safety-net issue," he said. "I'm by far the biggest philanthropy in the world. And what are we? We're $10 billion a year."

Industry can't fix it alone either, he said: model builders are "not policy people" and have "a little bit of a bias against talking about the potential negatives of their products."

Timeline

2023

Mustafa Suleyman publishes "The Coming Wave," arguing society is unprepared for the changes AI will bring. That same year, Gates, Suleyman, Demis Hassabis and hundreds of other tech and policy leaders sign a statement saying the risk of extinction from AI should be a global priority alongside pandemics and nuclear war.

Around 2023

Gates writes that AI job disruption will be "bumpy" but "manageable."

June 2026

Microsoft President Brad Smith writes that AI "will displace some jobs, even as it creates others," and that "when technology increases supply, human ambition often generates more demand."

Aug. 26, 2026

Gates publishes his essay and goes public with the reversal.

Reactions

Gates said some technologists privately agree with him, naming Microsoft AI CEO Mustafa Suleyman. "Mustafa feels the same way today that he felt when he wrote the book," Gates said. "He's very, very glad I'm writing the memo."

Google DeepMind co-founder Demis Hassabis has recently proposed a federally overseen frontier-AI standards body, modeled partly on FINRA and funded largely by industry, that would test advanced models before release. He said it could eventually be made mandatory and could coordinate a slowdown among frontier labs.

The optimist case, made by Microsoft's Brad Smith in June, is the historical one: technology revolutions destroy some jobs and create more.

The data is not settled. Semafor notes the IMF estimates AI could affect nearly 40% of jobs globally and 60% in advanced economies; Stanford researchers found no economy-wide displacement but a 19% employment gap for 22-to-25-year-olds in exposed occupations, largely through reduced hiring; and Yale's Budget Lab has yet to find a clear AI-related labor-market footprint. Gates acknowledged his warning is a forecast, not a reading of today's employment data.

What's Next

Gates told Semafor this is the first of several planned essays, including one with a deeper analysis of the biological risks from AI.

Reuters reported that Gates has policy ideas on AI he wants to discuss with Chinese leader Xi Jinping.

More

Gates also cautioned against assuming the companies building the most powerful AI systems will capture most of the wealth they create. Intense competition could commoditize models, he said, much as fiber optics and disk storage changed the economy without producing an obvious class of winners.

"You can actually have technologies that change the world very, very dramatically, and there's no profit created," Gates said.

His larger fear is backlash — that job losses turn the public against AI entirely and cost society the gains in science and health. "What is the backlash going to be as these jobs go away?" he asked. "It'll make the data center thing look like nothing."

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