On CNN’s State of the Union, Bill Gates warned that AI could reshape work more profoundly than earlier technologies, including personal computers and the internet. He said the breadth of potential job losses across sectors could be “unprecedented,” and argued that society must decide how automation is taxed and which jobs should remain human-led.
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His proposals are intended to address two questions: whether tax rules should treat automation more like human labor, and whether some work should stay in human hands even if machines can do it.
Why Gates wants society to set rules for AI and work
Gates’s concern is that employers face different tax treatment when they hire people versus adopt automation. In his account, wages are subject to payroll taxes, while a robot may be deductible as a business expense—an imbalance that can favor replacing workers with machines.
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He argues that technological capability alone should not decide what gets automated. Some jobs, he says, should be designated “Human Reserved”: work society chooses to keep for people even as AI and robots improve. The CNN coverage describes his call to reserve some occupations in education and health care; other reporting cites childcare and jury service as examples.
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What a “token tax” and robot tax would do
In an essay published on Gates Notes in August 2026, Gates proposed taxing AI tokens—the units used by AI models—and robots. He says a targeted tax could reduce the incentive to replace human labor and raise money for retraining and a stronger safety net for workers affected by automation.
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Gates also acknowledges a key design challenge: the tax should not obstruct beneficial uses of AI, such as making medicine and education cheaper. The proposal’s effectiveness would depend on how policymakers define and apply the tax; it is a suggested approach, not an established policy or demonstrated outcome.
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The immediate risk he highlighted: malicious AI use
Separately, Gates warned that malicious actors using AI without adequate safeguards could fuel cyberattacks and cause “negative surprises” in the year ahead. That near-term concern sits alongside his longer-term focus on employment and social policy.
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What remains unsettled
Gates’s proposals invite difficult choices: how to define taxable AI use, which occupations—if any—should be protected, and how to support workers without discouraging useful automation. The supplied reporting describes the broad proposals but does not establish how those questions would be resolved.
The idea of taxing robots has faced criticism before. In 2017, Harvard economist Lawrence Summers argued that Gates’s earlier robot-tax proposal could be counterproductive, calling it “protectionism against progress.” That past objection is relevant context, but it does not by itself determine whether the newer proposals would work.
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