This paper introduces an adaptive AI governance model designed to mitigate income inequality exacerbated by AI-driven labor market disruptions. The authors propose a framework that integrates real-time data analytics, machine learning, and dynamic policy adjustments to provide tailored policy recommendations. The core of their approach involves a predictive analytics platform that utilizes Monte Carlo simulations and agent-based modeling to forecast labor market trends and assess the impact of AI adoption. The model employs a shallow Multi-Layer Perceptron (MLP) architecture, trained on the ag_news dataset, to predict economic indicators. The authors evaluate the model using Mean Absolute Error (MAE) and R-squared metrics, acknowledging limitations in data representation as indicated by negative R-squared scores. The paper emphasizes the model's potential for dynamic policy recommendations that balance AI innovation with worker protection, highlighting future work on enhancing model accuracy and applicability. The authors' primary contribution lies in the proposed adaptive governance framework, which aims to provide context-aware policy recommendations by integrating real-time data and simulations. The model's architecture includes a predictive analytics platform, a simulation and forecasting module, an adaptive policy framework, and a mechanism for balancing innovation and worker protection. The predictive analytics platform uses a shallow MLP to process textual data related to economic indicators and labor trends. The simulation and forecasting module employs Monte Carlo simulations and agent-based modeling to explore various AI adoption scenarios and their potential impacts on labor markets. The adaptive policy framework incorporates a feedback loop mechanism to refine policy recommendations over time based on real-time data and observed outcomes. The balancing mechanism uses a multi-objective function to weigh the trade-offs between innovation and worker protection. The experimental evaluation focuses on assessing the predictive accuracy of the MLP model, reporting consistent MAE metrics but acknowledging limitations in data representation as indicated by negative R-squared scores. The authors acknowledge that the ag_news dataset may not fully capture the complexity of real-world economic data, and they outline future work to enhance model accuracy and applicability. Overall, the paper presents a novel approach to AI governance, but the experimental validation and practical implementation details require further development. The paper's significance lies in its attempt to address the critical issue of AI-induced income inequality through a dynamic and adaptive governance framework, but the limitations in the current implementation need to be addressed to realize its full potential.