, ECS3704 ASSIGNMENT 3 SEMESTER 1 PORTFOLIO
DUE DATE 2 JUNE 2026
THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME ON
POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL INTELLIGENCE-
DRIVEN UNEMPLOYMENT
Introduction
South Africa remains one of the most unequal societies in the world despite significant
democratic and economic developments since 1994. High unemployment rates, poverty,
and unequal access to economic opportunities continue to affect millions of citizens.
The country already faces structural unemployment challenges resulting from historical
inequalities, limited skills development, and economic stagnation. The emergence and
rapid expansion of artificial intelligence (AI) and automation technologies introduce
additional concerns regarding future employment opportunities. AI-driven systems
increasingly perform tasks previously completed by human labour, thereby raising
concerns regarding job displacement and income insecurity among workers. While
technological advancement can improve productivity and economic growth, it may also
increase unemployment among low-skilled and routine workers if adequate
interventions are not implemented (Brynjolfsson & McAfee, 2014).
South Africa's labour market is particularly vulnerable because a large proportion of
employment is concentrated within sectors susceptible to automation, including
manufacturing, retail, administrative work, and certain service industries. As AI
technologies become more sophisticated and affordable, organisations may increasingly
substitute human labour with automated systems to reduce operational costs and
DUE DATE 2 JUNE 2026
THE EFFECTS OF BASIC INCOME GRANT AND UNIVERSAL BASIC INCOME ON
POVERTY AND INEQUALITY IN SOUTH AFRICA UNDER ARTIFICIAL INTELLIGENCE-
DRIVEN UNEMPLOYMENT
Introduction
South Africa remains one of the most unequal societies in the world despite significant
democratic and economic developments since 1994. High unemployment rates, poverty,
and unequal access to economic opportunities continue to affect millions of citizens.
The country already faces structural unemployment challenges resulting from historical
inequalities, limited skills development, and economic stagnation. The emergence and
rapid expansion of artificial intelligence (AI) and automation technologies introduce
additional concerns regarding future employment opportunities. AI-driven systems
increasingly perform tasks previously completed by human labour, thereby raising
concerns regarding job displacement and income insecurity among workers. While
technological advancement can improve productivity and economic growth, it may also
increase unemployment among low-skilled and routine workers if adequate
interventions are not implemented (Brynjolfsson & McAfee, 2014).
South Africa's labour market is particularly vulnerable because a large proportion of
employment is concentrated within sectors susceptible to automation, including
manufacturing, retail, administrative work, and certain service industries. As AI
technologies become more sophisticated and affordable, organisations may increasingly
substitute human labour with automated systems to reduce operational costs and
