Fiscal Policy in the Age of Artificial Intelligence

This volume is among the first to bring together, in a single coherent treatment, how the rise of Artificial Intelligence is reshaping public finance across advanced, emerging, and developing economies alike.

As AI diffuses through the economy, the labour-income and payroll bases that fund public budgets may come under growing strain; income is likely to shift from labour toward mobile capital and intangible assets; and the demands on public spending, from social protection and reskilling to support for displaced workers, are set to rise. A serious literature on this challenge is now forming at the research frontier, yet it remains fragmented across disciplines. This book aims to bring those strands together and extend them across advanced, emerging, and developing economies.

Thematic scope

Topics of interest

Contributions may address, but are not limited to:

• Automation, labour-share decline, and the erosion of income and payroll tax bases.
• Rebalancing the tax mix: capital, wealth, corporate, data, and consumption taxation.
• Taxing automation directly: robot taxes, digital services taxes, incidence and feasibility.
• International taxation of AI rents: profit shifting and the OECD/G20 two-pillar framework.
• Fiscal implications of AI-driven productivity growth and its distribution.
• Public spending pressures: social protection, unemployment insurance, reskilling.
• Universal basic income, negative income taxes, and alternative transfer designs.
• AI in tax administration: compliance, audit selection, fraud detection, forecasting.
• AI for public financial management, budgeting, and macro-fiscal modelling.
• Fiscal space, informality, and revenue mobilization in developing economies.
• Political economy and distributional consequences of AI-era fiscal reform.
• Comparative and country-level case studies across all income levels.

Editors