Flash Posts

The AI Power Play and the Reluctance to Regulate Siddhartha Mitra and Kunal Dey

The AI Power Play and the Reluctance to Regulate Siddhartha Mitra and Kunal Dey

The quest to understand the human brain and body initially arose from a fundamental desire to improve health outcomes and enhance human well-being. Over time, these efforts laid the foundation for transformative advancements in medicine and surgery.  However, the deep explorations in human physiology and resulting discoveries that marked this quest have directly shaped the evolution of Artificial Intelligence (AI) and robots, which can now outperform humans in a growing number of tasks. What was initially a mission for improving human welfare has now become a means, intentionally or unintentionally, for rendering humans redundant.

For example, Santiago Ramón y Cajal’s discovery that neurons in the human body communicate through electrical and chemical signals has inspired the formation of artificial neural networks, enabling machines to recognise patterns and process information like the brain. Similarly, Donald Hebb’s theory of synaptic plasticity which explained how learning strengthens neural connections, laid the foundation for supervised learning: AI models undergo structured training through human instructions and inputs. Sutton and Barto’s work on reinforcement learning, inspired by how humans learn through trial and error and reward and punishment has led to similar learning by AI systems, enabling them to undertake human like navigation of environments, as exemplified by self-driving cars and drones. Sherrington’s discovery of reflex arcs highlighted how the nervous system controls movement of limbs in humans and inspired the development of sensorimotor systems in robotics. These can perceive changes in the environment, decide how to act in response to a change and then carry out the planned action.  Meanwhile, advances in biomechanics and motor control have driven the development of artificial muscles, allowing robotic limbs and exoskeletons to replicate human motion with remarkable precision.

The reshaping of the fabric of work by technological advancements is nothing new. In ancient India, the invention of the spinning wheel transformed textile-making, allowing cloth to be produced faster than ever before. It made fine Indian cotton famous across the world, yet thousands of skilled hand-weavers found their livelihoods slipping away. Centuries later, the arrival of British-built steam engines changed India’s landscape forever. Railways connected cities, opened markets, and brought people closer, yet it also pushed bullock carts and traditional trade routes into decline. The industrial revolution, which originated in Britain in the late 18th century and spread gradually to the rest of the world, introduced many machines into the manufacturing sector: for example, the Spinning Jenny that could spin multiple threads simultaneously and greatly enhanced the speed of textile production, the Power Loom that automated the weaving process by employing energy from steam, and the Cotton Gin which separated cotton fibres from seeds. These machines were able to mass-produce commodities which had been conceptualized and designed by humans. The operation of these machines also required human employment; therefore, machines and humans were complements in the production process.

Given that AI is another leap in technology, we should expect displacement similar to that historically produced by technological change. However, the AI revolution is markedly different from previous technological revolutions: the earlier machines complemented human intelligence and imagination in the mass production of goods and services but AI is threatening to be a substitute for human intelligence, creativity and even imagination. Machine learning models or health monitors powered by AI can now enable early detection of diseases such as cancer, heart disease, diabetes and even neurological disorders with remarkable accuracy, often surpassing human capabilities; computerized systems in offices have displaced thousands of clerks who are no longer required to maintain accounts, and process or analyse information; in manufacturing, robots are extensively being used in product assembly and welding, tasks which were earlier carried out by humans; in restaurants, robot chefs with their ability to implement recipes precisely are  displacing human chefs. In many arenas of production, the need for human intervention is disappearing altogether.

Traditionally, automation has displaced lower-skilled workers, but AI is disrupting an even broader range of professions. White-collar jobs once thought immune to such disruption such as legal research, financial analysis and customer service are now increasingly performed by sophisticated AI models. ChatGPT like assistants can generate contracts and AI-driven financial algorithms can outperform human traders in market analysis and execution. This rapid transformation risks making human lives less fulfilling as productive employment is an important input into wellbeing. As much as 14% of the global workforce (375 million people) will need to change careers due to AI by 2030, says McKinsey Global Institute.

The economic incentives for robotization are undeniable. AI technologies allow businesses to streamline operations, reduce labour expenses, and increase profit margins through improved productivity. AI systems enable businesses to process vast amounts of data, uncover market trends and new opportunities for revenue generation, and personalize consumer interactions at unprecedented scales. Unlike human employees, robots do not demand higher wages or go on strike, and require no pensions or workplace benefits. They also do not suffer from mental health problems or require breaks from work. For this reason, early investments in AI capabilities can help firms achieve market dominance. As a result, AI-powered chatbots have replaced human customer service agents, and self-checkout machines in retail marts like Walmart and IKEA have diminished the need for cashiers. This trend is also seen in global supply chains: Amazon and Alibaba rely on robotic warehouses which operate with minimal human intervention. In the groundbreaking dark factory of Xiaomi, a Chinese multinational, one smartphone is assembled by robots every second without requiring human effort. The production process never pauses or tires and never makes mistakes. No wonder capitalists often tend to prefer robots to humans.

Given that AI will tend to drastically reduce human employment, regulation of the use of AI may be called for. But at the same time, capitalists seem keen to adopt AI as and when the possibilities open up, for the mentioned reasons. Given the alliance between politicians who control regulatory frameworks and capitalists who provide crucial financial backing for political campaigns, it is unlikely that such regulation will be forthcoming. The alliance represents an exchange where political power facilitates economic advantage, and economic resources help secure political power. A clear demonstration of this alliance can be seen in the U.S. where tech companies rank amongst the highest spenders on lobbying efforts. In 2021 alone, as reported in The Washington Post, tech giants like Amazon, Google, Meta and Microsoft collectively spent $70 million in lobbying U.S. lawmakers to augment their power and influence. History also demonstrates the stability of this alliance, with governments supporting entrepreneurial efforts to regiment human labour in factories during the The Industrial Revolution (18th –19th Century) or loosening regulatory bottlenecks to enable the The Outsourcing Boom (1980s–1990s).

World leaders often frame AI as a key driver of economic progress. European Commission President Ursula von der Leyen has described AI as a “significant opportunity” if used responsibly, advocating for voluntary codes of conduct over binding regulations to ensure that developers can rapidly implement AI technologies without regulatory barriers. Similarly, former British Prime Minister Rishi Sunak has argued that overregulation could hinder innovation and prevent AI from reaching its full potential. The reluctance of politicians to regulate artificial intelligence, vividly reflects their alignment with capitalist interests and geopolitical priorities. Despite growing recognition of AI’s transformative potential and associated risks such as employment disruption, world leaders continue to favour collaboration and voluntary frameworks over regulations.

World leaders need to pay heed to a critical economic paradox: while AI technologies can be profitable in the short run for adopting companies, the reduction in employment they bring about can substantially reduce consumer purchasing power and firm level profitability. This presents a classic macroeconomic challenge where efficiency gains at the level of the individual firm might collectively be associated with diminished market demand.

Therefore, the message is clear:  to preserve human jobs and ensure that technology serves the greater good, substantial regulatory frameworks must be established. Otherwise, we are looking at mass unemployment and dwindling profits, even for the capitalists looking eagerly for opportunities to adopt AI. Regulation is not always an obstacle to innovation but rather a mechanism to channel technological progress toward inclusive growth. Capitalists, political leaders and workers should form an alliance to work out a regulated trajectory of the spread of AI. The future of work and indeed humanity depends on our ability to strike a balance between innovation and inclusion.

About Author

Bhumish Sheth

Bhumish Sheth is a writer for Qrius.com. He brings clarity and insight to topics in Technology, Culture, Science & Automobiles. His articles make complex ideas easy to understand. He focuses on practical insights readers can use in their daily lives.

what is qrius

Qrius reduces complexity. We explain the most important issues of our time, answering the question: “What does this mean for me?”

Featured articles