Context:
According to a presentation at the WEF annual meeting in Davos, Artificial Intelligence (AI) could contribute between $2.6 trillion and $4.4 trillion annually to the global economy.
Key Highlights of the Presentation
Digital Divide and Access to Technology
- Over 2.5 billion people globally still lack internet access, hindering their ability to participate in the digital economy.
- A third of the world’s population cannot access online services that are essential in today’s digital world such as finance and banking, education and healthcare.
- Even in developed nations like the United States, 24 million people lack access to high-speed internet, limiting their ability to engage fully in the economy.
Three Waves of AI Value Creation: there will be three distinct waves of opportunity through which value will be captured –
- First Wave: Hardware vendors are currently benefiting from AI advancements.
- Second Wave: Large companies, or “super scalers” (e.g., Microsoft, Google, Oracle), will capture value through the broad availability of connectivity and compute power.
- Third Wave: It will benefit enterprise software vendors who provide AI and GenAI solution sets on top of their existing products.
What steps must be taken?
- AI could serve as a source of generational wealth, but this depends on addressing biases in AI systems and ensuring equitable access to AI tools and education.
- To prevent AI from becoming an economic wedge/divide, efforts must be focused on ensuring equitable development, especially for marginalized communities.
- The importance of eliminating digital divides within and between countries must be emphasized, ensuring access to AI education, tools, and necessary infrastructure.
- Governments, businesses, and organizations must act decisively to unlock AI’s full potential, ensuring that it serves as a tool for economic empowerment and not further entrenching existing inequalities.
Recent Global Initiatives for AI Advancement
“Stargate” Initiative of USA: It is a $500 billion initiative aimed at creating an AI infrastructure in the US over the next four years. It includes the construction of massive data centres and campuses across the US.
- It also presents a golden opportunity for India also to accelerate its AI ambitions by deepening partnerships with the US.
- India can capitalize on the Critical and Emerging Technology (iCET) agreement and the Indo-Pacific Economic Framework for Prosperity (IPEF) to co-develop technologies and enhance its domestic AI capabilities.
IndiaAI Mission: Launched in March 2024, it aims to bolster India’s global leadership in AI and democratize the benefits of AI across all strata of society.
- The Union Cabinet has approved an allocation of over Rs 10,300 crore for the IndiaAI Mission.
Digital Europe Programme: Under it, the European Commission has dedicated €1bn to bridge the gap between digital technology research and market deployment.
- It provides funding for projects in five crucial areas: supercomputing; artificial intelligence; cybersecurity; advanced digital skills; and ensuring the wide use of digital technologies across the economy and society.