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.