In recent years, the concept of universal basic income (UBI) has gained significant attention, not from grassroots community organizations but from some of the most powerful figures in the technology sector. Prominent advocates like Elon Musk and Sam Altman argue that UBI is necessary to address the economic disruptions caused by artificial intelligence (AI) and automation. They present UBI as a way to ensure that the benefits of AI are distributed across society, not just concentrated in the hands of a
The Intelligence Curse by Luke Drago and Rudolf Laine is an AI-focused article about how advanced artificial intelligence could change economic incentives in ways that reduce the importance of ordinary humans in society. The article is not about individuals becoming too smart, but about intelligence becoming a fully substitutable economic resource. Once AI systems can perform most or all economically valuable tasks better and cheaper than humans, the importance of human labor begins to disappear.
Today, governments and corporations depend on people. States need citizens for tax revenue, economic productivity, and political legitimacy; companies need workers and consumers to generate profits. Because of this dependence, institutions have to invest in people by various means — through education, infrastructure, wages, and welfare. This mutual dependence gives ordinary individuals bargaining power and drives both democracy and capitalism.
The "intelligence curse" emerges when this dependence breaks down. With sufficiently advanced AI, powerful actors — states, corporations, and AI labs — can generate wealth directly from artificial intelligence rather than human labor. As a result, people cease to be economically necessary. This has several cascading consequences:
- Mass automation progressively eliminates jobs, not just for routine workers but eventually for highly skilled professionals as well. This process, described as “pyramid replacement,” hollows out organizations from the bottom up until even elite talent is displaced.
- Economic power shifts away from labor toward capital and control over AI systems. Ownership of compute, data, infrastructure, and AI models becomes far more important than human effort. Those who already possess capital gain a permanent advantage, while social mobility declines sharply.
- Institutions lose their incentive to invest in people. If humans no longer contribute meaningfully to production or revenue, funding education, public goods, or welfare ceases to have a clear return on investment.
This mirrors the “resource curse” in economics, where states rich in natural resources neglect their populations because they no longer rely on taxation. The illustrative case is Congo whose economic history is one of lucky breaks leading to great misery. There is no other country in the world as fortunate as Congo in terms of its natural wealth. But not a drop of the fabulous profits trickled down to the larger part of the population. Rather, they have often served as a slave labor force for the extraction of those resources at minimum cost and maximum suffering.
The "intelligence curse "is a more extreme version: AI replaces almost all of labor. The result is a potential breakdown of the modern social contract: Democracies and market economies historically align the interests of powerful actors with the well-being of citizens, because human productivity drives growth. But in a post-AI - world, this alignment disappears. Power could concentrate in the hands of those controlling AI, leading to entrenched inequality, reduced freedom, and the marginalization of most people.
The article warns that if intelligence becomes independent of humans, society may no longer be organized around human flourishing. To quote economist Erik Brynjolfsson, who runs the digital economy lab at Stanford University: In this world, most of us “would depend precariously on the decisions of those in control of the technology.” Society would risk “being trapped in an equilibrium where those without power have no way to improve their outcomes”.