A top-ranking South Korean policymaker recently suggested that an AI “dividend” could be paid to citizens from the excess tax collected from companies handsomely benefitting from the AI boom, such as Samsung and SK Hynix. This boom is certain to bring about an increasing level of wealth inequality. While the AI dividend would help with alleviating the increased level of wealth inequality, South Korea could take a further step.

A land value tax, especially on the land where the factories of companies producing equipment for AI use are located, would return the value that society has given to the resources being used to produce the advancing technology. From increased demand for equipment to soaring stock market valuations, it is clear that select companies are greatly benefitting. The negative effects of the AI boom on the community, such as job displacement and a warming climate, can be mitigated through returning the value that society has placed on the resources used to supply and advance AI.