This document discusses the challenges of AI and automation for shared prosperity. While some studies warn of mass unemployment due to automation, others find the risk is lower and new jobs have historically emerged. Automation has contributed to rising inequality by reducing wages for routine middle-skill jobs. AI differs in its ability to replace non-routine labor, but most jobs will still require human skills. To maximize AI's benefits and minimize inequality, complementary reforms are needed like retraining, protecting workers, regulating tech companies, and investing in new labor-intensive industries like education and healthcare.