Artificial intelligence could pose new challenges for Social Security, as economists warn that AI-driven job losses may reduce payroll tax revenue and strain the program’s finances.
Barron's reported that Social Security relies on payroll taxes to fund benefits. If AI reduces the number of workers, revenue flowing into the system could fall off notably.
Some economists estimate that even modest AI-driven job displacement could move up the projected depletion date for the trust fund.
Best estimates are that full benefit payouts may begin to be cut in the early 2030s.
The report also noted that productivity gains from AI could raise wages for some workers. Those gains are expected to provide only limited relief to Social Security's long-term funding gap.
Barron's also reported that official Social Security projections do not explicitly account for artificial intelligence. That omission leaves uncertainty about how quickly technological changes could alter the program's outlook.
Research on artificial intelligence suggests it could significantly alter the U.S. labor market in the coming years, with potential implications for Social Security funding.
The McKinsey Global Institute has estimated that as much as 30% of work hours in the United States could be automated by 2030. Separately, the Social Security Administration's Office of the Chief Actuary has warned that faster-than-expected job losses tied to technology could reduce payroll tax revenue below current projections.
Newsweek reported that some analysts say those trends add to existing concerns about the program's finances.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said Social Security depends heavily on payroll taxes and that widespread employment disruption could reduce incoming revenue if job losses materialize at scale.
Others caution that the effects of artificial intelligence remain uncertain.
Beene noted that it is still early to assess AI's actual impact on employment compared with expectations, but said the issue may warrant consideration by policymakers as they debate future tax and funding structures.
Kevin Thompson, chief executive of 9i Capital Group, said Social Security already faces pressure from demographic trends, with the trust fund projected to be depleted in the early 2030s without legislative changes.
He said artificial intelligence could accelerate discussions about how the program is funded, even if it is not the sole driver of financial stress.
Some observers point out that technological change has historically produced both job losses and new forms of employment.
Thompson said artificial intelligence is likely to disrupt the labor market while also creating new opportunities, though the timing and scale of those shifts remain unclear.
Attorneys and financial planners cited by Barron's have also warned that reduced workforce participation could shrink the payroll tax base, even as artificial intelligence becomes more embedded across industries.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
© 2025 Newsmax. All rights reserved.