The wealth divide in America is accelerating. The top 10% now control half of all consumer spending, while the bottom 60% struggle with shrinking shares of income and assets. This isn’t just about inequality—it’s about economic stability and the forces shaping the future.

Artificial intelligence (AI) is already transforming industries, but as automation scales up and artificial general intelligence (AGI) emerges, the economic order could fracture in two distinct directions. One scenario locks wealth in the hands of a few, reinforcing disparity. The other upends traditional models, making access to abundance universal.

The Wealth Divide in Numbers

The concentration of wealth is becoming more extreme:

• The top 10% of U.S. earners now account for 50% of consumer spending, up from 40% in 1990.
• The bottom 60% have seen their spending power drop from 25% to below 19%.
• Wealth inequality is even sharper: The top 10% owned 70% of total household wealth in 2021, projected to reach 75% by 2025. The bottom 60% hold only 5-10%.
• Since 1990, real income growth for the bottom 60% has been less than 15%, while the top 10% have seen gains exceeding 80%.

Shrinking shares of income and assets aren’t just a footnote in the inequality debate—they’re a flashing warning sign for economic stability and the forces steering us into the future. Artificial intelligence (AI) is already shaking up industries, but as automation ramps up and artificial general intelligence (AGI) steps into the spotlight, the economic order could split in two wildly different directions. One path hoards wealth in the hands of a shrinking elite; the other flips the script, opening the door to universal abundance. For a deeper look at how wealth takes shape and sticks around, check out How Wealth Is Formed and Sustained: A Three-Part Framework.

Two Futures: How AI Will Shape Wealth

AI’s trajectory could either widen this gap or rewrite the rules entirely. Here’s how it might play out.

Scenario A: Disparity’s Endgame

If today’s trends hold, AI could lock wealth into an even tighter grip. Automation’s already replacing jobs—think customer service bots and self-driving trucks—and it’s only getting started. By 2050, the top 10% might control 85% of all wealth, while the bottom 60% scrape by with just 2%. Poverty could spike to 25%, leaving an economic underclass leaning on government handouts. Labor’s share of national income, which has been slipping 1-2% annually since 2000, would crater faster. Economic mobility might stall out, echoing the rigid hierarchies of aristocratic eras past. Curious about AI’s role in this? The Great Inversion: How AI Is Quietly Flipping Traditional Power Structures digs into the details.

Scenario B: The Age of Abundance

Or AI could take us somewhere else entirely—a world where labor’s obsolete and abundance rules. Picture AI slashing production costs so low that basics like food, shelter, and transport become nearly free. Wealth, as we know it, might lose its meaning when goods are dirt cheap, and value shifts to knowledge, creativity, and influence. Universal Basic Income (UBI) could scale up from small trials—like Stockton’s guaranteed income experiment—to a global norm. Without traditional jobs, society might pivot to rewarding innovation and personal growth. The elite? They’d trade financial clout for cultural and tech sway. For more on this shift, The End of Human Wealth: How AI May Render Traditional Capital Meaningless lays it out.

Early Indicators: The Future Is Already Unfolding

Both paths are showing early signs. Automation’s eating jobs in logistics and finance, while AI-driven tools like Khan Academy’s tutors hint at a knowledge-focused future. UBI experiments are picking up steam, too—Silicon Valley’s heavy hitters are pouring cash into testing new income models. The AI revolution isn’t some distant dream; it’s unfolding now. The real question is whether we nudge it toward inclusion or let the divide grow. Want a glimpse of what’s coming? Life in 2032: A Day in the Life of Alexander Hale offers a front-row seat.

The 1% and 10% Hold the Key

The economic elite aren’t just along for the ride—they’re the ones steering. Their moves today will tip the scales toward concentration or expansion. Wealthy families have navigated crises before; Historical Strategies for Wealth Preservation: Insights from Elite Families shows how they’ve done it.

Three Steps to Influence the Future

1. Invest in AI Education and Creativity: Pump money into AI literacy and creative skills to prep people for a world where labor’s optional. It’s about future-proofing society—something Future-Proofing Your Career in the Face of an AI Tsunami tackles head-on.
2. Support New Economic Models: Test and scale systems like UBI or AI-driven wealth sharing to dodge a total collapse. How AI Will Transform Capital explores what’s possible.
3. Steer AI Toward Public Benefit: Push AGI development to serve everyone, not just the top dogs. Control matters—The True Power of AI Lies in Its Ability to Scale explains why.

The next 20 years will settle whether AI deepens the rift or redefines what prosperity means. The Road Ahead: What the Next Decade Holds for AI and Society maps it out.

Key Data at a Glance

The Choice Ahead

AI’s remaking the global economy, no question. Whether it cements inequality or births a new paradigm hinges on who’s calling the shots—governments, corporations, and the ultra-wealthy. Their decisions today will echo into 2040 and beyond. For high-net-worth folks looking to ride this wave, How AI Can Help You Build and Preserve Wealth offers a playbook.

The paths are laid out. Which one we take is still up for grabs.

For more on AI’s economic shakeup, explore:

• The Economic Singularity: AI, Crypto, and the End of Human Labor
• The Great AI Wealth Reset
• AI-Powered Wealth: Mastering the 17 Types of Rich

Disclaimer: This content is for informational purposes only and does not constitute financial, legal, or investment advice. Consult a professional before making financial decisions.