This discussion paper argues that automation has the potential to create immense and widespread benefits if managed effectively. The growing capability of machines is likely to transform rather than eliminate work, with aggregate employment effects likely to offset negative sectoral impacts. The paper argues that the biggest challenge of automation is likely to be one of distribution, not production. In the absence of policy intervention, the most likely outcome of automation is an increase in inequalities of wealth, income and power. However, it argues that the pace, extent, and distributional effects of automation will be determined by our collective choices and institutional arrangements. Public policy should actively shape the direction and outcome of automation to ensure its benefits are fairly shared.
