Guardian | The richest stand to gain more from the introduction of new technology than those in poorer sections of society, according to a report which warns that policymakers may be required to intervene to tackle the widening inequality.
The so-called fourth industrial revolution, following on from the introduction of steam power, electricity and electronics, will have less of an impact on developed economies, such as Switzerland, Singapore and the UK. Emerging markets – notably in parts of Latin America and India – will suffer when artificial intelligence and robots become widely used, reducing the competitive advantage of their cheap labour.
The report by Swiss bank UBS, published on Tuesday to coincide with the start of the World Economic Forum in Davos, warns that some skilled work is also at risk as robots become more sophisticated.
Axel Weber, the chairman of UBS, said: “Inequality increases not just between developed and developing and emerging countries. It’s also within our society. It will have an impact not only between the rich and the poor but also the young and the old.”
The report outlines a polarisation in the labour force and “greater income inequality imply[ing] larger gains for those at the top of the income, skills and wealth spectrums”.
“These individuals are likely to be best placed from a skills perspective to harness extreme automation and connectivity; they typically already have high savings rates and will benefit from holding more of the assets whose value will be boosted by the fourth industrial revolution,” the report says.
