Social Security Could Be Under Threat From AI

[BumRushDaShow]

Source: Newsweek

Published Dec 26, 2025 at 11:02 AM EST


A report published by Barron's on Friday pointed out some of the negative effects that artificial intelligence (AI) could have on the Social Security Administration (SSA), which is already facing a funding gap as early as 2033. If AI cuts into more jobs, then the number of workers' wages sustaining the social safety net program would get even smaller, with potentially widespread implications for current and future beneficiaries alike.

Why It Matters

Social Security is primarily financed through payroll taxes on workers and employers. These taxes flow into trust funds from which benefits are paid to retirees, disabled individuals, and survivors of deceased workers.

The Social Security Board of Trustees has repeatedly stated that the program’s trust fund may be depleted by 2033, at which point only about 77 percent of scheduled benefits could be paid unless Congress intervenes.

What To Know

Analysts have warned that AI and automation could significantly shrink the payroll tax base. As machines increasingly perform tasks once completed by human workers, especially in white-collar and mid-level jobs, this could lead to widespread job displacement or underemployment.


Read more: https://www.newsweek.com/social-security-could-be-under-threat-from-ai-11272142

---

Link to Barron's article - https://www.barrons.com/articles/social-security-benefits-fund-ai-584a1203?mod=hp_SP_B_3_1

Barron's No paywall (gift)

[Deuxcents]

1. I got my SS COLA 2026 statement in the mail today with information to go digital..

I am suspicious of signing up because of the DOGE raid into the system and putting more info than they already have..which is everything, anyway. I’ve never had to inquire or had a problem with SS or Medicare, for that matter, as everything has run smoothly..as it should. Any others signing up?

[kimbutgar]

8. My husband started applying for social security this year in May and it took him almost 3 months to complete the process

I’m going to start the process for myself starting in January when I turn 70 at the end of March !

OUCH I’m going to be 70!

[BumRushDaShow]

12. I left mine alone

and got my paper statement in the mail a couple weeks ago. I can still go online via Login.gov to get to SS, although they have changed how that works (I use that to look at my federal retirement stuff), including a whole new convoluted "verification/authentication" configuration process.

[Deuxcents]

14. Thanks..I'm thinking I'm not gonna go digital..haven't called and never had a problem so..if it ain't broke kinda thing

[anciano]

2. 21st century needs require 21st century tools.....

Historically, new technologies have invariably sidelined some existing occupations, but new jobs and career opportunities have always replaced the ones that were lost.

[walkingman]

3. The SS system has been under threat for 85 years. The GOP has never liked it

and if AI does have the effect on employment that many suspect it will, it will definitely lead to changes. With all of this "America First" BS, you would think it would be a good time to protect America's Seniors?

[OC375]

4. Gen X

There ain't enough of us, and we don't have the Boomer's lifetime earnings either. Many of us are IT as well. The money isn't gong to be there from taxing wage earner's income alone. SS funding is going to have to change, possibly in some big ways, even if everything was going well.

[Intractable]

5. If AI is replacing tax-paying wage earners, then it is AI usage that must be taxed.

Tax them by the number of employees they fire.

[OnlinePoker]

9. Or by the number of robots in their factories. n/t

[GoodRaisin]

7. Social Security has a much greater threat than AI

like the funding gap moving ever closer to near term and a disfunctioning government incapable of fixing it; and, with few people talking about it.

[ToxMarz]

10. Many products and industries have taxes and fees

applicable to those particular industries. If AI is joining the workforce, it can damned well contribute to SS and Medicare employment taxes. Or maybe $100,000 a person HB-1 visa's for every job they take, they are stealing American jobs and aren't American citizens.

[Marcuse]

11. Corporations should pay virtual FICA and income taxes based on the assessed value of their AI labor. .

[PoindexterOglethorpe]

13. Let's see, I'm 77 years old, and for

a good 60 years I've been reading that Social Security is going to run out of money soon. And at least so far, Congress essentially ups the funding and we continue to get SS.

These Republicans will not be here forever. I suspect (someone who follows this more closely can help out here) that the 2026 election will change lots of things.

Meanwhile, anyone and everyone who voted for Republicans this past election totally deserve it. Even though the rest of us don't.

[Cirsium]

15. All bullshit

That is right wing framing on steroids. Fund the damn program.

[Picaro]

16. AI is the core problem for the global economy

The elephant (or mastodon or brontosaurus…) in the room is that the reason all these mega corporations are going all in on AI is that they can envision a time when they can dispense with their highly trained knowledge workers. These are the expensive ones.

AI can’t do it now, but the El Dorado these corporate leadership teams are dreaming of is an employee-less future.

If AI becomes as capable as these corporate sociopaths want it to be the world will sink into an economic depression that it will never emerge from.

What does a consumer economy look like when the consumers cannot buy living space and food much less spend at a level that will sustain a growing economy?

Well, it will be something worse than the Great Depression.

And that would take down everything—not just Social Security.

These corporate overlords want to make humans superfluous.

I am starting to think that we all need to become neo-Luddites. And I’m a technology guy of 40+ years.

[cstanleytech]

17. AI replacing people as workers is fine but only if there is a reasonable minimum income system for people.

[LudwigPastorius]

18. The answer, of course, is an automation tax on the companies that make these things.

But, this being 'Murica, that won't happen.

We useless meatbags will be simply left high and dry after a lifetime of contributing our labor to this country.

[RainCaster]

19. This is why we need a wealth tax

So so those billionaires can pay their fair share.

[Bohunk68]

20. Exactly.

Remove the cap. Have them contribute as high a percentage as everyone else. Wouldn't mind seeing the Income tax % from the Eisenhower years.