Income inequality and monopolies

"Generative AI can create not only income inequality at the societal level but also monopolies at the market level. Individuals who are engaged in low-skilled work may be replaced by generative AI, causing them to lose their jobs (Zarifhonarvar, 2023). The increase in unemployment would widen income inequality in society (Berg et al., 2016). With the penetration of generative AI, the income gap will widen between those who can upgrade their skills to utilize AI and those who cannot. At the market level, large companies will make significant advances in the utilization of generative AI, since the deployment of generative AI requires huge investment and abundant resources such as large-scale computational infrastructure and training data. This trend will lead to more uneven concentration of resources and power, which may further contribute to monopolies in some industries (Cheng & Liu, 2023)."