Could universal basic income be part of the solution in an AI economy?

At the German government's 2026 "Digital Summit" in early November, Chancellor Friedrich Merz was asked by a journalist to square a difficult economic circle: If artificial intelligence could make hundreds of thousands of people redundant in the next few years, might it become necessary for the government to give people a basic income to ease the ensuing economic disaster? Surprisingly, Merz didn't respond with a flat dismissal — as might be expected from a conservative politician known for his neoliberal, market-friendly views. "I've always been a bit cautious about this issue in recent years," he said, as reported by the news outlet RND .