Editorial
Though your business may operate domestically, the global influence of AI technologies is inescapable. Implementing AI not only transforms individual businesses but also influences international trade, labor markets and political stability, creating a ripple effect with consequences for global economics and governance. As renowned foreign affairs expert Fareed Zakaria, host of Fareed Zakaria GPS on CNN, stated during his WebexOne keynote, “AI is not just a tool; it’s a force reshaping global economics and politics.”
Editor's Note: This is the third and final in a three-part series. Read part one, on how AI will change how we interact with our physical workplaces and part two, on the infrastructure and sustainability challenges AI faces.
The Economic Shift: AI as a Global Economic Driver
AI has the potential to be one of the most transformative forces in the global economy since the Industrial Revolution. A report by the McKinsey Global Institute projects that AI could add up to $13 trillion to the global economy by 2030, which would increase global GDP by about 1.2% annually. This growth potential makes AI adoption not just a strategic advantage but also a catalyst that could redefine the competitive landscape for nations and companies alike. The economic shift is likely to be uneven, leading to disparities between countries that effectively harness AI and those that lag. Zakaria warned that AI could widen global inequalities as countries with advanced technology infrastructures and resources stand to benefit disproportionately, while those without access to these resources risk being left behind. “Nations that lead in AI will dominate economically and politically,” he explained, pointing to an emerging “AI divide” reminiscent of the digital divide that characterized the early internet era.
Global Insight: For executives, this economic divide poses both opportunities and ethical considerations. Companies operating in AI-advanced countries have a competitive edge, but they must also consider how their innovations could affect global stability. Engaging in collaborative, cross-border AI partnerships can help mitigate some of these inequalities, creating a more inclusive economic impact.
Related Article: AI Is Here, But It's a Band-Aid, Not a Transformation
Geopolitical Tensions and AI’s Role as a Strategic Asset
AI’s impact extends beyond economics into geopolitics, reshaping power structures and heightening competition among global superpowers. Zakaria highlighted the “AI arms race” between the United States and China, where both nations are investing heavily in AI, viewing it as a critical component of national security and technological dominance. As Zakaria warns, AI now occupies a place in geopolitics that rivals the role of nuclear technology in the 20th century.
According to new data from Georgetown University's Center for Security and Emerging Technology (CSET) and shared first with Axios, China leads the U.S. as a top producer of research in more than half of AI's hottest fields.
This competition between the U.S. and China is already influencing global trade policies, intellectual property laws, and alliances. Zakaria emphasized that “AI will increasingly be used as a tool of influence, and nations will wield it to project power, much like they did with military and nuclear capabilities in past eras.”
For businesses, this geopolitical climate means that AI-related decisions may have implications beyond their immediate goals. Companies engaged in AI innovation should stay informed about international AI regulations and understand how geopolitical dynamics could impact supply chains, data governance and cross-border operations.
AI and National Politics: The 2024 US Election and Beyond
Another significant point Zakaria raised was AI’s impact on domestic politics, particularly in the United States. He expressed concern over AI-driven misinformation campaigns and their potential to undermine democratic processes, stating, “AI has the power to influence public opinion, and when used irresponsibly, it could erode trust in democracy itself.” In the lead-up to the 2024 presidential election, there is growing worry that AI-generated deepfakes, fake news, and targeted misinformation could distort public opinion and challenge the integrity of electoral systems.
Americans are concerned about AI’s potential influence on elections, particularly as it relates to misinformation and voter manipulation. Pew Research Center found 56% of Americans felt this way,which underscores the need for policies that safeguard democratic systems from AI misuse. Zakaria suggested that within the next four years, the U.S. will need to develop comprehensive regulations for AI in media, protecting the public from disinformation while allowing space for beneficial AI applications in government and civic engagement.
For executives, the rise of AI-driven misinformation is a reminder of AI’s dual nature: while it can empower businesses and improve efficiencies, it also has a dark side that requires careful oversight and ethical consideration. Businesses must adopt responsible AI practices and support transparency and ethical standards in AI deployment to mitigate risks that could affect public trust and social stability.
Related Article: Who's Responsible for Responsible AI?
Global Responsibilities: Ethical AI and the Ripple Effect
Executives considering AI implementation should recognize that their decisions contribute to a larger, interconnected phenomena. Zakaria urged leaders to view AI through a global lens, where ethical considerations are as important as competitive advantages. He emphasized the responsibility businesses hold to use AI in ways that align with principles of fairness, transparency, and sustainability. “If AI is going to be the defining technology of this era, then it is incumbent upon those who wield it to consider the long-term consequences,” Zakaria stated.
In an increasingly interconnected world, AI implementation can have unforeseen ripple effects across borders and industries. For example, an AI innovation that displaces jobs in one region may result in economic challenges elsewhere. Ethical frameworks for AI development, along with policies that promote global cooperation, are essential to ensure that AI serves as a positive force in international development.
Your Role: Act Responsibly, Think Globally
For executives, the insights offered by Fareed Zakaria serve as a powerful reminder of AI’s reach and the responsibilities it entails. Implementing AI is not a neutral act; it can influence global stability, economics and governance. By considering the broader ripple effects of their AI strategies, companies can act as responsible stewards of this transformative technology, balancing competitive goals with a commitment to ethical and sustainable practices.
Related Article: AWS's Diya Wynn: Embed Responsible AI Into How We Work
From Insight to Action: Preparing Your Business for AI
AI is no longer a distant technology reserved for Silicon Valley or high-tech industries; it’s a transformative force already impacting diverse fields and redefining the landscape of work, decision-making and strategy. For many executives outside of the technology sector, understanding AI’s role in their business can seem daunting. Yet, the insights gathered in this series make clear that, while the path to AI integration presents complex challenges, it also offers substantial rewards for those who approach it with forethought and purpose.
The three areas discussed — AI-driven user interactions, foundational growth challenges and global impact — reveal that AI is reshaping the future of business in profound ways. With immersive, context-aware workspaces, AI-driven interactions are set to redefine workplace experiences, while emerging energy and infrastructure challenges present both obstacles and innovation opportunities. AI’s global impact highlights that, regardless of where your industry operates, adopting AI has ripple effects across economies and political systems, underscoring a growing responsibility for ethical AI deployment.
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As executives look to incorporate AI responsibly, several key considerations come to light:
- Invest in Data Strategy and Security: Reliable, high-quality data is the bedrock of effective AI. Executives should prioritize collecting, managing, and securing proprietary or frontier data that aligns with their specific business needs. This includes setting ethical guidelines for data use and protecting private information to maintain public trust.
- Evaluate and Plan for Energy Requirements: AI’s power demands are substantial and growing. Companies committed to sustainability may need to balance their AI ambitions with energy-efficient practices, investing in more optimized AI models or exploring renewable energy sources. Now is the time to build infrastructure plans that can support both AI scalability and corporate sustainability goals.
- Consider AI’s Broader Impact on Society and the Workforce: AI is more than a productivity tool; it has implications for workforce transformation and the ethical use of technology. Executives should develop a clear stance on AI ethics and prepare their organizations for the social changes AI may bring. This might include workforce reskilling, establishing guidelines for ethical AI, and collaborating with industry partners to support responsible AI adoption.
- Stay Informed About Policy and Regulatory Changes: AI is increasingly central to global policy discussions. Keeping abreast of emerging regulations and being proactive in understanding how these may impact your industry will help companies navigate potential risks and remain competitive.
Here’s the takeaway in a nutshell: AI presents not just a strategic advantage but also a responsibility. By thoughtfully addressing the technical, ethical and operational facets of AI, executives can harness AI to drive innovation and sustainable growth. The future of AI is already here, and the actions taken today will define how it shapes our organizations, industries and global society in the years to come.
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