Balance effects of AI with profits tax and green levy, says IMF

The IMF report counselled against taxing investment in AI but suggested raising capital income taxes such as corporation tax and personal income taxes on interest, dividends and capital gains.

Governments faced with economic upheaval caused by artificial intelligence should consider fiscal policies including taxes on excess profits and a green levy to atone for AI-related carbon emissions, according to the International Monetary Fund.

The IMF said unlike previous technological breakthroughs such as the steam engine, generative AI — the term for computer systems such as ChatGPT that can produce convincing, human-like text, voices and images from simple hand-typed prompts — can spread “much faster” and advances in the technology are happening at “breakneck speed”.