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AI arms race
What does the chart show?
This chart shows the total aggregated private investment in Artificial Intelligence (AI) from 2013 to 2022 by country. As AI becomes more and more integrated into the economy, the race for dominance in this transformative technology has intensified, with private investment acting as a key indicator of influence. The US, China, and the UK are the clear leaders, with private investment over the decade totalling $248.9 billion, $94.8 billion and $18.2 billion respectively. As a leading player in this movement, the US has demonstrated its commitment to keep up with the rapid pace of innovation, having passed more legislation relating to AI than any other country. Notably, the US has mandated comprehensive training for all AI-involved workers to be aware of its capabilities and associated risks.
Why is this important?
The widespread integration of AI has come with a whole new range of possibilities, alongside causes for concern. Questions continue to be asked on how these new advancements will impact the economy with regards to productivity, wages, unemployment, and sustainability. Forecasts predict a potential 7% year-on-year increase in Gross Domestic Product over 10 years, driven by boosts to productivity. Furthermore, companies have reported improved outcomes in costs, enhanced collaboration across business units, and more efficient organisational processes. These optimistic forecasts have already been reflected in markets with the NASDAQ-100 Technology Sector Index up more than 50% this year. Therefore, the country which takes the reins in terms of market power will wield an immense level of influence and have the potential for huge economic gains. However, as the adage goes, with great power comes great responsibility! Given the potential for massive disruption with regards to cyber security and mass unemployment if not implemented appropriately, governments will need to carefully craft regulatory frameworks to control a phenomenon dominated by a small set of private sector players fuelled by profit motives and fierce competition, rather than economic sustainability and society’s best interests. Security risks aside, there is also the danger of a new wave of de-globalisation as the gap widens between developed and emerging countries. Large language models, like Google’s recent release of PaLm (which required 360 times more data and was 160 times more expensive to produce than the first ChatGPT-2 model), present higher technical and financial barriers to entry in the AI space. Emerging nations may struggle to keep pace with the AI wave and may start falling behind as developed nations reduce their overall dependence on cheap foreign supply chains. If the current trend in investment continues, the US may be faced with the task of deciding how AI will shape our future.
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By Mondial DubaiWhat does the chart show?
This chart shows the total aggregated private investment in Artificial Intelligence (AI) from 2013 to 2022 by country. As AI becomes more and more integrated into the economy, the race for dominance in this transformative technology has intensified, with private investment acting as a key indicator of influence. The US, China, and the UK are the clear leaders, with private investment over the decade totalling $248.9 billion, $94.8 billion and $18.2 billion respectively. As a leading player in this movement, the US has demonstrated its commitment to keep up with the rapid pace of innovation, having passed more legislation relating to AI than any other country. Notably, the US has mandated comprehensive training for all AI-involved workers to be aware of its capabilities and associated risks.
Why is this important?
The widespread integration of AI has come with a whole new range of possibilities, alongside causes for concern. Questions continue to be asked on how these new advancements will impact the economy with regards to productivity, wages, unemployment, and sustainability. Forecasts predict a potential 7% year-on-year increase in Gross Domestic Product over 10 years, driven by boosts to productivity. Furthermore, companies have reported improved outcomes in costs, enhanced collaboration across business units, and more efficient organisational processes. These optimistic forecasts have already been reflected in markets with the NASDAQ-100 Technology Sector Index up more than 50% this year. Therefore, the country which takes the reins in terms of market power will wield an immense level of influence and have the potential for huge economic gains. However, as the adage goes, with great power comes great responsibility! Given the potential for massive disruption with regards to cyber security and mass unemployment if not implemented appropriately, governments will need to carefully craft regulatory frameworks to control a phenomenon dominated by a small set of private sector players fuelled by profit motives and fierce competition, rather than economic sustainability and society’s best interests. Security risks aside, there is also the danger of a new wave of de-globalisation as the gap widens between developed and emerging countries. Large language models, like Google’s recent release of PaLm (which required 360 times more data and was 160 times more expensive to produce than the first ChatGPT-2 model), present higher technical and financial barriers to entry in the AI space. Emerging nations may struggle to keep pace with the AI wave and may start falling behind as developed nations reduce their overall dependence on cheap foreign supply chains. If the current trend in investment continues, the US may be faced with the task of deciding how AI will shape our future.