Around a decade ago, Elizabeth Rhodes was finishing up a Ph.D. in social work and political science at the University of Michigan when she came across a blog post by OpenAI CEO Sam Altman, who was president of Y Combinator at the time. Rhodes wasn’t familiar with the startup incubator, but she was intrigued by Altman’s proposal to explore the challenges and limitations of Universal Basic Income (UBI)—an experimental social welfare program, advocated by some tech leaders, that provides regular, unconditional cash payments to all citizens.
“I had never heard of Y Combinator, I’m kind of embarrassed to say that I didn’t even really Google it,” Rhodes told Observer. “It wasn’t until I got interviewed that I was like, ‘Oh, this is a bit more unusual than expected.'”
Even as he was co-founding OpenAI, Altman was keen to investigate how direct cash transfers could counteract labor market shifts brought about by advancements in A.I. “I think it’s good to start studying this early,” he wrote in the blog post. “I’m fairly confident that at some point in the future, as technology continues to eliminate traditional jobs and massive new wealth gets created, we’re going to see some version of this at a national scale.”
The resulting UBI study was led by OpenResearch, an Altman-backed nonprofit that blends academic rigor with a startup approach—a dynamic that took some adjustment for Rhodes, who serves as the research director for the nonprofit. “I definitely had to learn a new communication style because in academia everything’s very verbose—you defend your choice 15 times over,” she said. “Sam was like, just tell me what your recommendation is.”
Rhodes has been immersed in this hybrid world for some time. She initially spearheaded a pilot UBI study for OpenResearch, which evolved into a comprehensive three-year study. Beginning in 2020, this larger study provided 1,000 participants in Illinois and Texas with monthly cash payments of $1,000, while a control group of 2,000 received $50 monthly. Altman provided $14 million in backing for the project, and its initial findings began to emerge last year.
OpenResearch is still analyzing the extensive data and gathering additional information to understand the long-term impacts of the transfers. Preliminary results already indicate that the cash transfers had multifaceted effects. Beneficiaries of the UBI experiment showed a greater propensity for goal-setting, prioritized spending on necessities, pursued education or job training, relocated to new neighborhoods, or spent on medical care.
Furthermore, the target group worked 1.3 fewer hours per week but were more inclined to prioritize engaging or meaningful employment. Rhodes cited an example of one recipient who transitioned from a phlebotomist job with no advancement opportunities to a new role with a lower starting salary but significantly more flexibility and potential for growth.
A crucial takeaway from the study, however, is that cash alone isn’t always a complete solution. The concept of UBI “is part of a larger policy framework—but I think we have a lot more work to do to understand what that entire framework looks like,” said Rhodes. She added, “The idea that we’re going to give everyone a certain amount of money, and think that’s going to sort of address some of the barriers or promote accountability across the board, I think is a challenge.”
Going forward, Rhodes is interested in studying the varying impacts of different forms of cash distributions—for instance, comparing monthly payments to lump sums. She also aims to undertake a shorter-term project, examining how access to OpenAI’s AI models affects the cognitive burden of participants.
However, a project on the scale of OpenResearch’s recent cash transfer study isn’t in the immediate future. “This was a $60 million multi-year study, and we’re not quite ready to launch another,” the researcher said. Nevertheless, regardless of its next venture, the nonprofit will prioritize an equitable distribution of benefits, according to Rhodes. “Our broader goal is really, how do we ensure more shared prosperity in whatever form?”