Telangana to explore AI tax

Telangana Chief Minister A Revanth Reddy has said the state government is exploring policies to tax AI companies to compensate people who lose jobs due to automation.

In a virtual address to an Artificial Intelligence (AI) symposium at Harvard Kennedy School in the US on Friday night, he described AI as a “double-edged sword”, warning that the risks could outweigh the benefits if not managed early.

“We will also try to bring policies similar to pollution, where polluting industries will have to pay for carbon credits. We will try to bring laws so that AI firms can be taxed for people’s credits,” said Reddy, who recently completed a five-day leadership program at Harvard Kennedy School.

“It is absolutely appropriate that our companies, with trillion-dollar valuations, compensate the people and society who have lost their jobs,” he said.

Drawing parallels with earlier technological changes, the CM said machines have made manual work easier rather than replacing it.

“AI will transform rather than change the scope of work for doctors, lawyers, architects, filmmakers, writers, poets, policy makers.” He cautioned that entry-level hiring could decline even as overall production increases.

Reddy also highlighted that the Bharat Future City being developed by his government on the outskirts of Hyderabad will have a district dedicated to Artificial Intelligence.

He said that AI City will be a one-stop destination for GCC (Global Competence Center) in AI and its applications.