Concern 2: Who gets to eat?
With AI being a "general technology" with potential uses in almost any business sector, concerns about job losses and economic disruption are rife. As the Guardian put it, finding an answer to the question of "who gets to eat" is noticeably absent from most discussions on this topic.
Ethical Consumer and others have long written about how Big Tech companies have used tax havens and other artificial schemes to systematically avoid paying corporation taxes. Judging by the flow of cash, the AI future envisaged by many investors is clearly one where even more "economic value" is captured by Big Tech.
This would then appear to be a future with falling tax revenues and with increasing demand for social welfare.
Which doesn’t really add up.
This is why our tax rating of companies in our guides, may be particularly useful to help choose less damaging companies in this context.
Big tech and tax avoidance
A report by TaxWatch found that seven large US-based technology groups made so much profit from selling to UK customers in 2021 that they should have paid around £2.8 billion in UK tax. Instead, it's estimated that around £753 million was paid in UK corporation tax and digital services tax, leaving a gaping hole of £2 billion UK tax avoided.
This £2 billion could have paid for public services, including health workers and teachers.
Ethical Consumer's research into Amazon estimated that it should have paid around £575 million in UK tax in 2024. But, because of Amazon’s aggressive tax avoidance strategies, it’s likely that only a tiny fraction of the amount that might be expected will be paid. Amazon’s owner, Jeff Bezos, has been the focus of campaigners who argue that the super-rich should pay more tax. His hiring of many parts of Venice for his wedding was met with resistance and calls for him and other billionaires to contribute more fairly to tax.
Alongside Amazon, Apple, Alphabet (Google’s owner), Meta, and Microsoft all score exceptionally badly for tax conduct in our ethical ratings.