Why Cognizant CEO Ravi Kumar S Wants to Tax AI Use

You recently celebrated 20,000 entry-level grads hired at Cognizant. At the same time you announced a plan for spending $270 million on severance. How many jobs has Cognizant eliminated because of AI adoption? 

The net addition of people is still positive for the company. We’re still growing. 

Do you find that new employees who used AI in college lack curiosity or resilience?

Somebody asked me this question saying, how do you keep that curiosity if you’re outsourcing everything you would like to do to a machine? I think we need massive transformation in K-12 schools. It’s funny, if you use AI in schools, schools will fire you. If you don’t use AI in workplaces, your employer will fire you. Schools should teach native skills in classrooms without AI. They should give homework, which you should do with AI.

Do you believe we’re in an AI bubble?

If you see this buildout, and if it is real, money will flow into the bridges. Money will flow into the end user industries and the end user industries will benefit out of it. If that flow is not happening, then this bubble is going to burst. I am convinced the capability is there. I’m equally convinced the production value is not there.

You’ve proposed taxing digital labor. This idea can’t be popular with your customers.

I’m not saying that universally. I’m actually saying if you are positioning this technology to eliminate human work, and you are not positioning this technology to amplify human work, labor is getting taxed. Why should human labor be getting taxed? Why shouldn’t digital labor be carrying the same overhead?

How do you worry America has turned against immigrants and immigration?

Do we need the best talent in the world to be in the United States? Absolutely. That’s been the strength of America. 

The endeavor of enterprises is to attract the best talent across the world and to create domestic talent pools in a sustained manner. Now, if we lose that mojo of doing it, then we wouldn’t be able to create these innovation ecosystems. Even today, the United States is the best place for upward social mobility… Whoever you are, it doesn’t matter. Whatever background you come from, it doesn’t matter. You could live the American dream. 

TIME editors independently oversee the content of The CEO Moment, including this episode with sponsor Cognizant.