AI Gains Could Deepen Economic Inequality, EY Economist Says
EY-Parthenon chief economist Gregory Daco warns that AI-driven productivity growth tends to benefit large, vertically integrated firms while squeezing smaller businesses and workers. He notes that in 2026, corporate margins hit a record 14.9% of GDP while labor's share of income fell to 52.8%, the lowest since 1947. Daco argues that productivity gains protect profits, not wages, and that labor's share could decline further.
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Original headline: “AI’s productivity boom will likely create a ‘winner-takes-all’ economy, top EY economist warns.” Browse more stories.