Larry Ellison’s Vision: How the AI Era Can Make Us Wealthier

AI as an Engine of Economic Growth

Oracle co-founder Larry Ellison has offered an optimistic outlook on the future of artificial intelligence. Speaking at the AI World conference, he stated that technological progress will not only boost productivity but also lower the cost of goods and services globally, ultimately making people wealthier.

Ellison strongly rejects the notion that AI will entirely replace humans, calling such views incorrect. While acknowledging that automation will lead to job losses in certain sectors, he emphasised that the human role in supervision and management will remain critical. He pointed to the aviation industry as an example, noting that despite the existence of autopilots for decades, the need for pilots remains essential.

The Concept of 'Universal High Income'

To illustrate his economic model for the future, Ellison used a hypothetical example of a house built by robots. He estimates that if automation handles 80% of construction work, the cost of the home would drop drastically, creating significant economic value. This is where his idea of "Universal High Income" comes into play.

Unlike traditional "Universal Basic Income" (UBI), which provides only a minimum standard of living, Ellison’s vision is far more ambitious. He proposes a fundamental reform of the tax system: "We need to move from taxing human labour to taxing value-added. When robots create value-added, the government taxes that, and with that revenue, it becomes possible to enrich society."

Challenges and Reality

Despite his optimism, Ellison admits that such large-scale change will require at least a decade and significant political will from governments. His vision echoes the "negative income tax" concept proposed by economist Milton Friedman, which aims to redistribute wealth.

However, the current reality is somewhat different. Over 135,000 jobs have been cut in the tech sector this year alone. Oracle itself reduced its workforce by approximately 21,000 employees between June 2025 and June 2026. Despite these statistics, Ellison remains convinced that these are temporary difficulties and that, ultimately, artificial intelligence will lead humanity to new economic heights.

For countries like Georgia, which are actively striving to establish a place on the global technology map, such economic transformations are significant. If the world transitions to a value-added tax model, it will create both new opportunities and challenges for smaller economies.