Artificial Intelligence has sparked a lot of conversation, especially after the launch of ChatGPT 4. Most of the people have been amazed by how the technological invention can be able to do tasks such as coding, or writing essays. There have also been other Artificial Intelligence innovations such as Aiva that can be able to write music. There have been mixed reactions to the advancement of technology as the majority of the people feel like the advancement will result in the loss of jobs while others feel like it will create more jobs. As a result of the panic, some people suggest that there should be an AI tax while others feel it is still too early to come up with AI taxes as this will discourage the companies that are responsible for the innovations.

In 2017, Bill Gates brought up the AI taxation issue stating that AI and robots should be taxed because they had the potential of replacing human beings in the workplace. Bill Gates gave out this suggestion at a time when the AI revolution was at its third era: the LargeScale Era which would later on result in the invention of various revolutions like ChatGpt. His sentiments are now making sense because AI inventions like ChatGPT 4 can do a wide range of tasks which puts human resource at risk. Bill Gates claimed that it would be inappropriate to tax a robot the same amount of tax that is imposed on a human being for a similar income for the same job. Some pundits contend that AI and robots ought to “receive” the income as a distinct taxable subject, most likely on a presumed basis. Bill Gates argued that if the state were to do this, then State revenue would not be significantly impacted by this. One possibility would be to treat the AI/robot as an individual for income tax purposes. Treating them as subjects of a taxable legal entity is an additional choice. In a similar vein, suggestions have been made about indirect taxation, more notably VAT issues, suggesting that once artificial intelligence (AI) and robots are granted legal personality and tax capability, they may also be regarded as taxable persons and be subject to VAT.

A recent Forbes Article argued that Artificial Intelligence will be like cryptocurrencies which were subjected to unfair taxes thus resulting in the decrease of their prices. In the article, the author states that the projections on job losses are highly speculative and that actual job losses have not yet taken place. However, this is not the case because according to a report from ResumeBuilder, 37% of 750 firm leaders stated that Ai replaced employees in 2023.However, some experts like Julia Toothacre state that even though there are layoffs, there are various businesses that have not yet implemented AI in their structure which means that some citizens are safe from getting laid off.

What is happening in the current AI revolution is similar to what happened when computers were introduced into businesses. Many people thought that accountants and typists would be replaced and they would die due to the inability to get a job. However, other jobs were created due to the introduction of computers and the people that were formally typists were able to get into other jobs. Moreover, the introduction of computers made the work of accountants easier rather than put them out of jobs. In the case of artificial intelligence, some of the jobs that are likely to be created include prompt engineer, AI output verifier, AI instructor, AI trainer, and Tech Entrepreneur.

It is clear that the loss of jobs due to AI is neither speculative nor is it inevitable. Therefore, governments and major regulatory bodies need to start formulating taxes that will control the use of Artificial Intelligence in businesses and the rate at which Artificial Intelligence is being released into the market. This will enable workers and businesses to have enough time to adjust to the innovations and prevent being laid off in an already tough job market.