Revanth Reddy proposes ‘AI tax’ to support jobs at risk from automation

Telangana Chief Minister Revanth Reddy has sparked a major debate by proposing a new idea—taxing AI companies to support people who may lose jobs due to automation.

Speaking at a Harvard Kennedy School AI symposium, he called artificial intelligence a “double-edged sword,” warning that its risks could outweigh benefits if not regulated early.

In simple terms: companies using AI may have to pay for jobs lost.

The government is exploring a model similar to carbon credits, where industries compensate for pollution. Here, AI firms could be required to pay **“people credits”** to support workers impacted by automation.

Why this matters: as AI adoption grows rapidly, concerns about job loss—especially among young professionals—are becoming more real.

Subtle system angle: while companies benefit from automation and efficiency, the burden of job displacement often falls on workers, raising questions about fairness and accountability in the tech economy.

If implemented, this could become one of India’s first policy attempts to directly link AI profits with social responsibility.

For Gen-Z entering the workforce, the big question is no longer “Will AI take jobs?”—but “Who pays when it does?”