With the release of his encyclical letter Magnifica Humanitas on May 25, 2026, Pope Leo XIV has signaled that he wants the church to respond to artificial intelligence much as a predecessor, Pope Leo XIII, responded to upheavals during the Industrial Revolution over a century ago.
Since the first act of his papacy – choosing his name – the current pope has repeatedly invoked the earlier Leo’s 1891 encyclical Rerum Novarum. That document, which waded into the political and economic debates of the time, denounced the excesses of the Gilded Age and pointed toward a more just social order. Now, Leo XIV has used his first major statement to the world to present a new Rerum Novarum for the age of AI.
Rerum Novarum was more than just a theological text. It helped reshape economic policy around the rights of workers, serving as a spiritual foundation for European social democracy and the 1930s New Deal programs that still undergird economic life for working Americans today. It also spurred a movement of entrepreneurs to transform the economic system from within.
Understanding its influence is key to seeing the potential of Leo XIV’s encyclical.
From guilds to cooperatives in the industrial era
In his time, Leo XIII rejected both unfettered capitalism and revolutionary socialism. He invoked the medieval guilds, in which craftspeople self-organized, and asserted the rights of industrial workers to organize as well. This was a radical statement at a time when unions often faced violent suppression from employers and police.
But in contrast to communist agitators, he didn’t want to do away with private property. He argued that to bring out the best in human beings, as creatures made in the image of God, governments should “induce as many as possible of the people to become owners.”
Francesco De Federicis (1853–1908) via Wikimedia Commons
This was more of a vision than a detailed plan, but Catholics in many countries started trying to figure out what the vision meant in practice.
The English writers G.K. Chesterton and Hilaire Belloc, for instance, tried to systematize his vision in a movement they called “distributism,” which proposed policies for land redistribution and a revival of guilds. In the United States, economist and Catholic priest John A. Ryan argued in favor of cooperatives – businesses that could be co-owned by workers, consumers or small-business owners.
Ryan went on to be an important adviser for the New Deal in the United States, which used cooperatives as a powerful tool for economic development through farmer co-ops, rural electric associations and the credit union system.
The spirit of Rerum Novarum continued to spread. Starting in the 1950s, the largest network of worker cooperatives in the world, the Mondragon Corporation in Spain’s Basque region, was founded by a Catholic priest. It was a direct result of Leo XIII’s encyclical.
My own career has been in its shadow. As a media scholar and a Roman Catholic – and an advocate for efforts to build cooperative tech platforms – I sometimes think of my own work as applying Rerum Novarum to the online economy. With Magnifica Humanitas, the pope appears to be making a similar argument for the age of artificial intelligence.
A tale of 2 cities
Once again, society is going through an economic upheaval: New technologies are changing the nature of work, political systems are under strain, and wealth inequality is staggering. In Magnifica Humanitas, Leo XIV argues that an intervention akin to Rerum Novarum is needed.
AP Photo/Alessandra Tarantino
The guiding metaphor of Magnifica Humanitas is the choice between two biblical scenes: the Tower of Babel and the rebuilding of Jerusalem under the prophet Nehemiah.
The first is a story about the dream of a city that sets out to erect a single building as high as the heavens. Babel, as Leo XIV writes in the encyclical, is a city “built on pride and the claim to self-sufficiency.” In the biblical account, the project collapses as the world’s common language is scattered into many diverse ones.
The pope contrasts this with the story of the Hebrew prophet Nehemiah, who lived in the fifth century B.C.E., when Jews were returning from exile to a ruined Jerusalem. Nehemiah organized the city’s rebuilding through a collaborative process based on shared responsibility. While united in prayer, the city’s various families and professions could each put their distinctive marks on their work.
The current AI industry, he argues, is in danger of becoming a new Tower of Babel. Just a few companies control this powerful technology supposedly poised to transform work, politics and society for everyone.
He warns that many AI leaders are enthused by ideologies that propose to trade human limits for the godlike powers of machines. Some are even cheerfully embracing a world where human labor is no longer central to the economy. Leo also fears that human choice is becoming more removed from the execution of war.
In the face of all this, the encyclical calls on people everywhere to adopt “the pressing duty to remain profoundly human” – to be neither “spectators” nor “commentators” but to take an active role by participating in what he calls “the construction sites of history.” Some already are.
Construction sites for a different kind of AI
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It is easy to see the emerging AI industry in Babel-like terms – a few massive tech companies build the models and provide access to them on their terms. But other paths are still possible. My colleagues and I have been documenting cases that could be the germ of a different kind of AI industry – one more aligned with what the pope is calling for.
Just as during the Industrial Revolution, a more just future begins with workers resisting against the abuses of the present. From Hollywood to Nairobi, workers have been fighting for dignity as AI changes their professions. Magnifica Humanitas stresses the importance of decent jobs to a healthy society, and workers’ demands can help identify what the future of work should look like.
Other approaches begin among AI developers themselves. In Switzerland, a collaboration between government and academia has produced Apertus, a foundational model based on fully documented designs and data sources – a far cry from the opaque and at times illegal practices of leading AI companies. Some of Apertus’ developers have created a consumer cooperative, enabling users to co-own their interface with the model.
Cooperative ownership like this allows users to tune AI experiences more intentionally toward their needs. The large U.S. farmer co-op Land O’Lakes, for example, has created AI-enabled tools that provide analysis and guidance for its members based on the data that they collectively co-own. The more nascent Transkribus in Europe is co-owned by research institutions that collectively train their AI software to transcribe texts for historical research. These kinds of systems follow Leo XIV’s call to “manage data as a common or shared good.”
It is telling that even among leading AI companies such as OpenAI and Anthropic, the founders attempted to build unusual corporate governance structures to insulate their products from profit motives. Governments could encourage more appropriate ownership designs or outright require them for high-risk industries like AI.
If Rerum Novarum is any guide, the impact of Magnifica Humanitas will depend on the creative entrepreneurship and policy experiments to put it into practice – and this work has already begun.
