If human labour previously accounted for 80% of its cost, he suggested, automating construction could substantially reduce that expense. The example illustrated his prediction about cheaper production; it was not a reported result from an actual housing project. Ellison’s proposal centres on taxing the economic value generated by automation and using that revenue to support people’s incomes.
The Oracle co-founder and chief technology officer says robots will take over some jobs, but argues that greater productivity and changes to taxation could help spread the resulting wealth. Speaking at Oracle AI World in Las Vegas, he described a future in which automation reduces the cost of goods and services while US governments collect revenue from the value machines create. “We need to change from taxing human labour to taxing value added,” he said. His argument links AI’s economic benefits to how governments distribute them, with less reliance on taxing people’s work. Ellison rejected the suggestion that AI would eventually replace everyone, calling that prediction “kind of nonsensical” . The universal high income he described would go further, relying on AI-driven productivity to support higher living standards even as machines do more of the work. He also referred to economist Milton Friedman’s negative income tax proposal, describing it as a “reverse income tax” .
Larry Ellison believes AI can make everyone wealthier. “So when the robots add value, all that value that the robots add is taxed, and we could have universal high income . However, he acknowledged that automation would displace some workers, pointing to rideshare services as an example. He argued that better tools could also allow people to accomplish more. In the supplied account of his remarks, he cited robotic surgeons and aircraft autopilot systems to illustrate how technology can change work and improve productivity. To explain the potential effect on prices, Ellison described a hypothetical house built entirely by robots. Universal basic income generally means regular payments intended to cover essential living costs. Broadly, such a system pays people whose incomes fall below a specified threshold. Ellison’s comments outlined a possible direction for taxation rather than a detailed policy. The supplied excerpts do not specify tax rates, payment amounts, or eligibility rules. He acknowledged that the transition would take more than a decade, with robots gradually taking on more tasks people don’t want to do. You use AI every day. Now get your AI Quotient. Take the AIQ test.