Artificial Intelligence and the Future of Power | Digital Colonization
Previous industrial revolutions had distinct consequences in different nations and groups within countries. This probably applies to AI interrupts as well. We will see the initial disruption mostly in rich countries where automation is most widespread, but the consequences will gradually be felt around the world.
New energy centers based on artificial intelligence are firmly established in the United States and China. A new phase of colonization, known as digital colonization, has already begun. The resulting economic, social, and political consequences decimate other countries and relegate them to the position of colonies or satellites. And China’s control over its colonies will intensify to include vast areas of Africa and Latin America, as well as Asian nations such as Pakistan.
To understand the vast disparities that exist between this duopoly of AI leaders and other nations, we need to examine where new AIs are being invested. Recent investments in AI, as well as future projections, have led to a strong concentration of intellectual property, industrial assets, and wealth creation in the United States and China. According to PwC, AI will increase total global GDP by up to 14% by 2030, which means that in this decade alone, about sixteen trillion dollars in new economic activity will be added to the global economy.
The table below shows the contribution of artificial intelligence to global GDP by region. China is at the top, even ahead of the United States.
The 2019 United Nations report also provides an interesting insight into technological dominance.
China, the United States, and Japan account for 78% of all AI patents filed worldwide. The United States and China account for 75% of all blockchain patents, 50% of global IoT spending, at least 75% of the cloud computing industry, and 90% of the market capitalization of the world’s top 70 digital platforms. Companies.
The Internet of Things is a major new technology related to artificial intelligence, in which all kinds of physical items are digitally connected to the Internet in the same way as computers and digital phones. These connections include common household products such as light fixtures, refrigerators, and automobiles, as well as commercial equipment such as entire factories. The United States and China account for half of all global IoT spending.
With their robust AI developers, venture funding, and vast data sets already in place, China and the United States have surpassed all other countries in terms of investment. At the moment, their wealth is an insurmountable obstacle in the competition for all other countries.
Bain & Company examines another element of the differences that artificial intelligence would deepen between rich and poor countries. He warns that poor countries will no longer be able to climb the development ladder because of their low wages. Other research highlighting the growing gap between rich and underdeveloped countries states:
On the other hand, the winners of the digital revolution are expected to be highly developed Asian countries with strong educational institutions, such as Singapore, Hong Kong, Taiwan, and South Korea. These nations, along with the Scandinavian countries, have been researching and trying to find digital answers to complex problems for a long time. The digital connection of people in these countries is also quite sophisticated.
Sadly, emerging economies trying to emulate Japan’s export-led economic model, the Asian Tigers (South Korea, Taiwan, Singapore, and Hong Kong), and China are likely to encounter falling global demand. Large pools of unskilled labor will become less useful because labor will be a lower proportion of total costs as automation spreads. Meanwhile, new technologies are set to lower the cost of smaller-scale production and allow developed countries to become increasingly dependent on domestic production.
Emerging countries trying to replicate Japan’s export-based economic model, the Asian Tigers (South Korea, Taiwan, Singapore, and Hong Kong), and China are likely to face falling global demand. As automation expands, large pools of unskilled labor will become less valuable as labor becomes a smaller part of total spending. Meanwhile, new technologies are expected to lower the cost of smaller-scale production, allowing industrialized countries to rely more on domestic production.
It further states that automation will disproportionately affect the poor.
The new robot will displace about twice as many jobs in lower-income parts of the same country as in higher-income regions of the same country. This result has significant social and political implications at a time when the world is concerned about rising levels of economic inequality and political polarization.
According to research by the World Economic Forum, the digital divide between rich and poor countries creates a vicious circle from which the poor cannot escape.
The growing digital divide between nations threatens to become a vicious cycle as widening income gaps and brain drain makes it harder for those left behind to catch up. A lack of research and development capabilities is needed to succeed, leading to an even greater brain drain.
In conclusion, AI-driven disruptions will usher in an age of digital colonialism. As economies of scale play a key role in the creation and management of AI technology, the haves and have-nots of AI will be decisive in deciding the fate of nations. Some will win great victories, while others will be forced to resign. The countries with the biggest data sets, the biggest budgets, and the biggest implementation experience outperform others in AI. Digital dominance will result in profits and, as a result, better investment capacity over those who are lagging behind. The gap between the leaders and the laggards will be very hard to close; in fact, the gap is likely to worsen due to the exponential increase in technology. The comparative advantage of low wages
Countries left behind will face digital colonialism in the same way the Industrial Revolution oppressed most of the world. Nations that enter the AI race late will eventually end up having to accept their fate as second-rate participants, effectively becoming dependent nations, if not virtual colonies.