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BackHigh salaries in the AI industry are difficult to benefit all people. Legislators propose the establishment of an AI National Growth Fund
High salaries in the AI industry are difficult to benefit all people. Legislators propose the establishment of an AI National Growth Fund
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自由时报46 minutes agoBusiness2 min readChinaView original

High salaries in the AI industry are difficult to benefit all people. Legislators propose the establishment of an AI National Growth Fund

Quick Look

  • Legislator Chung Jia-bin pointed out that the operating profit rate of Taiwan's AI industry is 3.5 times that of other industries, but employees account for only 7% of the population, and high salaries have not driven the median.
  • He proposed the establishment of an AI national growth fund to encourage the AI industry to engage the public through the issuance of corporate bonds or special shares.
  • Ye Jun-hsien, chairman of the National Development Council, promised to discuss it and emphasized that the issuance of special shares by enterprises requires a board of directors resolution.

AI-generated summary

Why It Matters

Taiwan's AI industry is developing rapidly, and its operating profit rate is 3.5 times higher than other industries. However, employees only account for 7% of the total population, and high salaries have not effectively increased the national median salary.

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The high salaries in the AI ​​industry cannot benefit the entire population, so the legislator proposed the establishment of an AI National Growth Fund. (File photo, taken by reporter Wang Yisong)

[Reporter Wu Xintian/Taipei Report] Legislator Chung Jiabin pointed out that currently most of Taiwan's output value is highly concentrated in the AI industry, and its operating profit rate is 3.5 times that of other industries, but its employees only account for 7% of the entire population. He said that the high salaries and high year-end bonuses in the AI ​​industry have actually only raised the national average salary, but have not really increased the median salary, and have very limited help for middle- and lower-class salaried workers.

Ye Junxian, chairman of the National Development Council, went to the Economic Committee of the Legislative Yuan to report on the business overview and prepare for questions. Zhong Jiabin said that the current dazzling AI industry is the result of the foundation and efforts laid over the past few decades. Since the government is fully assisting the AI ​​industry, helping solve the problems of land, funding, water and electricity, cultivating talents, and significantly reducing the costs of industry players, these AI industries should take on the corporate social responsibilities of ESG and CSR and give back. Therefore, he made a specific proposal to the National Development Council to establish an "AI National Growth Fund."

Please read on...

Zhong Jiabin suggested that the government should think about how to encourage these "gold medal players" in the AI industry, by releasing corporate bonds or special stocks to allocate the funds needed for future investment to allow the public to participate. He pointed out that this "AI National Growth Fund" can be subscribed by bosses in non-AI industries who are unable to transform and upgrade but have funds on hand. Such a mechanism can not only give traditional industries the opportunity to protect their bottom line and inherit their wealth, making them willing to use funds to help the development of the AI ​​industry in the future, but can also effectively prevent idle funds from being reinvested in real estate, thus curbing further increases in housing prices.

Zhong Jiabin asked the National Development Council to submit a written report on the establishment of an "AI National Growth Fund" to take care of workers and enhance welfare. In this regard, Ye Junxian promised to go back and discuss it, but he also emphasized that if it involves the issuance of special shares by an enterprise, it must still be resolved by the board of directors, and the government cannot directly require the enterprise to cooperate.

Legislator Yang Qiong-ying also pointed out that although Taiwan has successfully built an AI sacred mountain to protect the country, traditional industries and small and medium-sized enterprises, including night markets and wet markets, these grassroots industries are currently facing the dilemma of lack of transformation resources, technology and talents. She questioned how the National Development Council can allow ordinary workers and non-technical workers to truly enjoy the dividends brought by AI development.

Ye Junxian said that the "Regulations on the Development of Small, Medium, and Micro Enterprises in Transformation" will be implemented next year, and it is expected that an additional 100 billion yuan in funding will be added within 8 years. Combined with the original subsidy plan, 25 billion yuan will be invested every year to assist small, medium, and micro enterprises in their transformation and development. Regarding the specific coaching mechanism, the Ministry of Economic Affairs will connect night markets, business districts, and small, medium and micro enterprise associations through tutoring groups in the north, central and southern regions, and introduce suitable AI tools and practical results to industry players through regular meetings, so that small, medium and micro enterprises can avoid the burden of self-research and development and obtain AI enabling tools directly through procurement.

Faced with Yang Qiongying’s request for specific KPIs to implement the goal of “leading the small with the big”, Ye Junxian explained that AI empowerment in the service industry is expected to reach 40% this year and move towards the 45% target next year; while the current AI empowerment ratio in the manufacturing industry is around 27% to 28%, and it is hoped that it will continue to increase in the future.

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What to Watch

AI outlook — possibilities, not facts

  • The National Development Bank will submit a written report on the AI National Growth Fund in the next few months.

    Likely · Within months

  • The AI empowerment ratio of small, medium and micro enterprises will reach the service industry target of 45% next year

    Possible · Within years

Open Questions

  • What are the specific scale and operating mechanism of the AI ​​National Growth Fund?
  • How will the issuance of corporate bonds or special shares attract non-AI industry bosses to participate?
  • What are the specific allocation and assessment mechanisms for the transformation funds of small, medium and micro enterprises?

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This article was originally published by 自由时报.

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