Artificial intelligence is widening the wealth gap: Billionaire Ray Dalio

Ray Dalio, Founder, Co-Chief Executive Officer and Co-Chief Investment Officer, Bridgewater Associates attends the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, January 18, 2017. REUTERS/Ruben Sprich - LR1ED1I0P481R

Billionaire investor and founder of investment firm Bridgewater Associates Raymond Dalio has said that while artificial intelligence (AI) and automation might increase productivity, it will also eliminate jobs, create massive  wealth and opportunity gaps, to the extent that it would become a national concern.

In a Facebook post, Dalio said, “My view is that algorithmic/automated decision making is a two-edged sword that is improving total productivity but is also eliminating jobs, leading to big wealth and opportunity gaps and populism, and creating a national emergency. Largely as a result of it, capitalism is not working for the majority of Americans and is in jeopardy. Yet no one is seriously examining what to do about it.”

While serial entrepreneur Richard Branson and Facebook founder Mark Zuckerberg think that universal basic income could be a solution for the rising wage gap, Dalio feels re-training people could be a better option than "transferring money to people who are unproductive."

As a solution to the imminent threat to capitalism and democracy, Dalio said, “I think that a national emergency should be declared, a special commission created, and metrics established to come up with programs and measurements to make work improvements that more than pay for themselves and measure the changes that are taking place."

"I know of many cost-effective ways that improvements that pay for themselves can be made and I’m sure that many others know of many more ways,” he added.