What is Universal Basic Income?

As artificial intelligence (AI) continues its rapid development, one thing is becoming increasingly clear — in the future, nearly all work could be performed by AI or robots. At first glance, this may seem wonderful: machines do the work, people can relax. A time may come when we say, “May the food be plentiful, even if there’s no work.”

But two serious questions arise:

1. If robots do all the work, how will people earn an income?
2. If robots do everything, how will people spend their time?

While these questions were rarely raised in the early 2000s, the fast-paced progress of AI has made them top of mind for many individuals and organizations today.

Currently, one of the most widely discussed responses to these questions is the idea of Universal Basic Income (UBI). So, what does this concept actually mean?

UBI is a system in which every citizen receives a fixed, unconditional amount of money from the government on a regular basis. Regardless of whether you are rich or poor, you receive the same sum — for example, $200, $500, or even $1000 per month — depending on the country’s economy. The key idea is that this money is provided to you simply because you exist.

In a world where most value is created by AI and robots, Universal Basic Income represents a government-backed guarantee that people will continue receiving income without any requirements — and regardless of whether they work or not. The aim is to maintain consumer purchasing power and ensure that people can live with dignity, without falling into poverty. While the government is typically considered the provider, in some models, private foundations or even corporations could take on this role.

UBI has several advantages and drawbacks:

Advantages:
• Reducing poverty – If robots take over the majority of jobs, a large portion of society could be left unemployed and without income. UBI would provide a safety net for those individuals.
• Social equality – Unlike today’s complex and segmented welfare systems, UBI offers a simplified and fairer model where everyone receives equal support.

Drawbacks and Risks:
• Loss of motivation – If people are no longer rewarded for their work, they may lose the drive to innovate or contribute to society in meaningful ways.
• Social injustice – Productive, law-abiding citizens and those who contribute little or even commit crimes would receive the same income.
• Costly experimentation – UBI is a system unlike any that humanity has ever implemented, and trial-and-error could be expensive with high stakes.

I first came across the term “UBI” in 2017 during a conversation between Elon Musk and Mohammad Al-Gergawi at the World Government Summit, where Musk stated, “I’m not saying I support UBI, but I think it’s something that will definitely be necessary in the future.”

Sam Altman, co-founder of OpenAI, also touched on UBI in his 2014 essay, “Technology and Wealth Inequality.” Later, through Y Combinator, he funded a private UBI experiment via OpenResearch, where 1,000 low-income individuals received $1,000 per month and another 2,000 received $50 per month, unconditionally, for three years. Their behaviors and outcomes were studied and analyzed.

This was a private pilot, you might say. But UBI is a serious issue receiving serious attention.

For instance, Stanford University now hosts a Basic Income Lab dedicated to research and experimentation on UBI. This lab works closely with the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania and the Mayors for Guaranteed Income (MGI) network. Together, they are conducting an unprecedented U.S.-based initiative called the Guaranteed Income Pilots, which provides various monthly payments to thousands of people across 30+ locations. These pilots gather data on spending patterns, behavior, and economic outcomes to inform policy.

In conclusion, Universal Basic Income is not a fairy tale. It’s a real, socio-economic concept that’s being seriously explored around the world. It’s not perfect. It’s not without flaws.

But at this moment in time, UBI remains the only widely recognized answer to the fundamental question of how humans will live in a world run by intelligent machines.

Tolibjon Mirzaqulov
AI Industry Expert
Author of “Fikrofon” Blog