The AI economy

The rapid rise of artificial intelligence (AI) is transforming industries at an unprecedented pace. However, the urgency of addressing the economic implications of this AI boom cannot be overstated. While AI promises efficiency and innovation, its economic implications are complex and demand immediate attention.

Investment in AI startups is soaring, yet many struggle to turn a profit. Much like the dot-com bubble, excessive hype could lead to financial instability if companies overpromise and under deliver. Additionally, AI-driven automation, such as the use of robots in manufacturing and self-checkout systems in retail business, is displacing jobs faster. So it is contributing to economic inequality. Governments worldwide are struggling to regulate AI while balancing economic growth and ethical concerns.

Moreover, tech giants' monopolisation of AI raises questions about market fairness. If only a few corporations control AI resources, it will be risky for small businesses and developing economies. They could be left behind. This concentration of power may hinder competition and also widen the global wealth gap.

To ensure that the benefits of AI are equitably distributed, it is imperative that we implement strategic policies. These policies should focus on investing in workforce re-skilling, fostering fair competition, and ensuring transparency in AI development. Without these proactive measures, the AI revolution might enrich a few while destabilising economies. So, right policies are required to steer AI towards a more sustainable and equitable future.

Yana Islam rifa

Bachelor of Business Administration

North South University

yanarifa284@gmail.com