The debate over AI regulation has typically focused on complex oversight frameworks and safety measures. But a simpler solution exists: tax artificial intelligence companies appropriately. This approach would generate public revenue while avoiding the bureaucratic maze of detailed regulatory compliance that could stifle innovation.

The Financial Times argues that the old laissez-faire world no longer exists given technology's market impact. AI companies generate enormous profits while potentially displacing workers and concentrating economic power. Taxation could redistribute some of these gains to society without micromanaging development.

Unlike heavy-handed regulation, proper taxation lets companies innovate freely while ensuring they contribute fairly to public coffers. This revenue could fund infrastructure, education, or social programs affected by automation. The approach appeals to policymakers seeking middle-ground solutions.

The challenge lies in implementation: determining what to tax, how to value AI's contributions, and preventing avoidance. Still, taxation offers a practical alternative to the regulatory arms race currently unfolding across Washington and Brussels.