3 days ago
Prudent AI policies needed to reduce income inequality, says economist
Published on: Thursday, August 14, 2025
Published on: Thu, Aug 14, 2025
By: FMT Reporters Text Size: Economist Yeah Kim Leng said AI co-pilots can boost productivity for technicians, nurses, teachers, frontline civil servants and micro-entrepreneurs. (File pic) PETALING JAYA: An economist says while artificial intelligence (AI) can spur economic growth, it can also worsen income inequality by raising demand for employees with the requisite AI skills and their salaries while displacing mid-skill clerical roles. Sunway University's Yeah Kim Leng said as such, prudent AI policies to achieve high adoption and readiness were imperative to reducing wealth and income inequalities. His comments come amid global concerns about rising income inequality due to the proliferation of AI. According to a 2024 International Monetary Fund report titled 'Gen AI: Artificial Intelligence and the Future of Work', higher-income earners in jobs with high AI complementarity are likely to benefit the most from such emerging technology. Yeah noted that large and medium-sized enterprises with 'data, capital and cloud access could leverage AI to scale up, thereby squeezing small firms' margins'. 'However, with the right policy moves to simultaneously achieve high AI adoption and readiness, AI can have a positive impact on narrowing income and wealth inequality in the country,' he told FMT. Yeah said AI could, for example, be used to shift reskilled workers to higher-value jobs to narrow the income gap. 'AI co-pilots can boost productivity for technicians, nurses, teachers, frontline civil servants and micro-entrepreneurs. 'Toolkits customised according to industry sectors could also raise margins for micro, small and medium-sized enterprises,' he said. Yeah also advocated the creation of a shared 'AI commons', or a platform or knowledge hub with open datasets and sector-specific starter models to promote broader adoption and equitable benefits. On Tuesday, digital minister Gobind Singh Deo said the government was working to expand its free AI literacy programmes nationwide to benefit a wide range of people, from rural schoolchildren to urban professionals. He said a core part of Malaysia's vision was to close the divide between those with access to AI tools and infrastructure and those without. 'The government is committed to making such tools more affordable for all citizens and ensuring that AI-powered services are priced and distributed in ways that enable broad adoption by all income levels,' he said in his keynote speech at the Asean AI Malaysia Summit. Gobind also said Malaysia's commitment to AI affordability extended across its borders, as disparities threaten to deepen the AI divide across Asean. 'These efforts are not just about national progress. They are part of a shared Asean commitment. Across Southeast Asia, disparities in computing power, affordability, talent pipelines and relevant datasets risk creating an uneven AI landscape. 'By embedding affordability into our national AI strategy through open access initiatives, shared infrastructure models and collaborative procurement, Malaysia intends to contribute to a regional approach where no member state is left behind,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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