Balancing AI Power: The Crucial Role of Policy in Ensuring Productivity and Equity

Opinion | Effective regulations are crucial for optimal AI results

Assigning artificial intelligence tasks to professionals and experts may lead to a future of diminished efficiency, exacerbated income disparity and increased market monopoly.

In the past few years, progress has decelerated globally due to a drop in productivity, despite the digital and tech advancements. Between 1996 and 2005, the growth of labor productivity in the US was at an average of 2.62%, but it fell to 1% between 2006 and 2017. This pattern is observed in various nations and is attributed to multiple interconnected factors like financial downturns, trade, and capital intensification.

In the absence of suitable guidelines, we risk falling into a terrible trifecta – poor efficiency, amplified income disparity, and an enormous consolidation of authority. On the contrary, with appropriate strategies in place, a nascent or evolving market economy could experience increased efficiency, enhanced inclusiveness, and diminished market monopolization.

Dominating the AI and technology sector requires a substantial market. A recent report by the Australian Strategic Policy Institute, which analyzed 64 key technologies through referenced research papers, revealed a shift in the leading roles of the United States and China over the past five years (2019-2023). India has now emerged as a strong player, ranking among the top five nations for 45 out of the 64 technologies. This is largely due to the significant number of STEM graduates it introduces to the industry.