New York City mayor-elect Zohran Mamdani's success has raised questions about whether AI work uncertainty is influencing US voters. AFP
New York City mayor-elect Zohran Mamdani's success has raised questions about whether AI work uncertainty is influencing US voters. AFP
New York City mayor-elect Zohran Mamdani's success has raised questions about whether AI work uncertainty is influencing US voters. AFP
New York City mayor-elect Zohran Mamdani's success has raised questions about whether AI work uncertainty is influencing US voters. AFP

Is AI layoff uncertainty putting socialist policies in a new light for US voters?


Cody Combs
  • English
  • Arabic

Concerns about artificial intelligence's impact on jobs combined with the rising cost of living could mark a new voting trend in US elections, experts say.

After a Democratic Party sweep of major US elections, including the historic victory of Zohran Mamdani in New York City's mayoral polls, politicians and commentators are looking for insight into what voters are thinking.

Mr Mamdani, a self-described Democratic socialist, campaigned on the rising cost of rent in the city while pushing for community-run grocery shops, free buses and universal child care – safety-net programmes that would help in times of layoffs.

It is too early to draw a major conclusion based solely on Mr Mamdani's win, as a host of issues were behind his victory. Yet months before the election, the Cato Institute, a libertarian think tank, pointed out that socialism in the US was having a moment, particularly among young people.

The survey showed that 62 per cent of citizens aged 18 to 29 held a "favourable view" of socialism, something that senior editor Michael Chapman described as "shocking".

The push for social programmes in the New York City election took place at a time of confusion in the US labour market about AI.

Towards the end of October, Amazon's chief executive Andy Jassy said AI was a motivating factor behind the company's decision to axe 14,000 workers. Microsoft, Meta and Google also announced layoffs this year.

The job cuts are notable for the fact that they have affected white-collar workers, computer programmers and managers.

Amid these cuts, a recent poll from the Pew Research Centre showed an increasing chasm between experts and the general public in enthusiasm for AI in the US.

Experts surveyed by Pew were significantly more likely – 56 per cent compared with 17 per cent – than the average American to say that AI would have a "very or somewhat positive" impact on society over the next 20 years.

Perhaps more striking, only 23 per cent of the general public polled said that AI would have a positive impact on how they work, with a "majority of US adults" thinking that AI would eliminate jobs in the next two decades.

Nvidia chief executive Jensen Huang has sought to clear up what he says is a misconception about AI. “You’re not going to lose your job to an AI, but you’re going to lose your job to someone who uses AI," he has said throughout the year.

Public sentiment, however, shows that Mr Huang's efforts, and those of many AI proponents, do not yet seem to be winning hearts and minds.

A similar poll by Pew conducted in October indicated that younger voters are "in virtually every country surveyed are more aware of AI" than older electors, and some say that could affect the electorate over the long term.

Timothy Kneeland, a professor of history, politics and law at Nazareth University in upstate New York, said that increased enthusiasm for socialist policies and candidates such as Mr Mamdani among younger voters means that the shift is more than just a blip.

"Young people fear this trend will continue and will seek some form of security, whether through regulation or democratic socialist policies that will guarantee universal basic income [UBI], single-payer health insurance, free education and public transportation," Prof Kneeland told The National.

The rising concern over AI runs counter to US President Donald Trump's initial popularity with many blue and some white-collar workers.

Some experts say US President Donald Trump's affinity for unregulated AI could have long-term effects on the electorate. Bloomberg
Some experts say US President Donald Trump's affinity for unregulated AI could have long-term effects on the electorate. Bloomberg

The 2024 Republican Party platform, much of it influenced by Mr Trump, promised to rescind policies and regulatory protection that "hinders AI innovation". In his AI Action Plan released in July, he also pushed to "dismantle unnecessary" barriers related to AI development with hopes of empowering US technology companies.

Prof Kneeland said that while Mr Trump has made no secret about his affinity for empowering Big Tech, words like "dismantle" have caused concern among many workers, and those seeking elected office in the months and years ahead might have to better read the mood of voters.

"Elected officials will have to play catch-up," he said. "Those fearing AI's impact on jobs and employment will begin to call for more restrictions and new policies to support those individuals who lose their jobs."

Peter Yacobucci, a political science professor at Buffalo State University, said that AI is yet another challenge presented to US workers in recent decades.

"It injects uncertainty and fear into the electorate," he said, adding that Mr Mamdani's Democratic socialist policies were a stark contrast to the once popular US rhetoric of "brutal free-market capitalism".

In some ways, Prof Yacobucci said, Mr Mamdani took a page from Mr Trump's playbook in identifying voter fears. "Yesterday [he] showed it can propel the party to electoral success," he said, adding that other Democrats might be wise to tap into AI concerns.

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Director: Jamal Salem

Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Publisher: EA Sports

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Rating: 3/5

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Director: Mohammed Saeed Harib

Stars: Shadi Alfons,  Marwan Abdullah, Doaa Mostafa Ragab 

Two stars out of five 

NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

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Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

While you're here

 

Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

Updated: November 06, 2025, 5:06 PM