Tsai Fang: Using the powerful capability of AI to establish a universal social security system.

On November 13, Cai Fang, a member of the Chinese Academy of Social Sciences and former vice president, stated in his keynote speech at the Taihu World Cultural Forum Qiantang Dialogue that artificial intelligence is a "creative destruction", with both creative and destructive elements. When productivity increases and labor is replaced at the same time, labor shifts to lower productivity sectors, leading to a widening productivity gap and overall suppression. Therefore, industrial policies promoting the research and application of AI need to strengthen means of promoting balance and eliminating technological divides. Cai Fang pointed out that the direction of AI technology ultimately depends on demand. China's advantage in AI development lies in its huge market size and broad application scenarios, so it needs to align with Chinese demand. Cai Fang suggested that balancing the destructive and creative aspects through institutional development. By leveraging the strong capabilities of AI to establish a universal social security system, create new jobs, improve the quality of employment, and reduce income inequality through redistribution.