Dr John Mohan Razu
The world we live-in posits a number of contradictions and paradoxes, especially when it comes to production, consumption, and distribution. Less than one percent representing about 500 oligopolistic corporations have more wealth and thus controls capital and wealth than that of some of the countries in the world. For decades a few agri-businesses mega corporations controlled the entire agricultural production and distribution across the world along with others known for their monopoly over the entire process of production, consumption, and distribution. Control over capital and technology enhances accruing of huge profits.
Those who control these mega corporations by virtue of having total control over capital and technology, apparently act as influencers of policies and programs of the governments across the globe by even going to the extent of controlling and prescribing what should we eat, what type of dress we should wear and what type of education our children should have and even decides who should govern and what ought to be the policies. Behind global production, consumption, and distribution, the capitalists scattered across the continents are responsible for major decisions. Control over capitalentails means and modes of production, including labor as well. Global South in order to grow on par with the developed Global North is following the path of rich developed countries.
Vying with Global North, but deprived of capital, technology and labor, invite these mega- oligopolistic corporations by offering lots of incentives and concessions, so that progress and development be achieved. This why these global corporations are called ‘engines of development’ and ‘movers of progress and growth’. These corporations belong to an economic and ideological system called capitalism. For about five centuries capitalism has moved on representing diverse epochs pushing the Global North to the present. Capitalism believes in innovation, competition, and profit maximization. As part of innovative capabilities these transnational corporations keep pushing technological know-how to higher and higher levels.
Currently we have been witnessing the unprecedented growth and expansion of Artificial Intelligence (AI) which is sweeping the world at large. There have been converging and diverging views on AI. Those who are in favor say that AI as years go by mitigate all kinds and forms of afflictions that the Homo sapiens are facing. And so, they say that there are huge benefits and few risks involved. As a system, capitalism in order to multiply its return keeps innovating higher forms that takes us from one phase to another. AI and its paraphernalia are the recent ones that has taken the entire world to another post-techphase. AI keeps evolving and gathering momentum at appalling ways and levels. With the speed and veracity of AI that make many to wonder where would this phase is going to take the entire world. Apparently, AI has divided people into: those who are dismayed, others more worried, while some keep interpreting the current phase and times.
Capitalism as a system is known for wealth creation. It is surprising and mind-boggling that as much as 96% of wealth gained on the Bloomberg Billionaires Index in 2024 is in AI-related stocks. Explosive waves of innovation have spawned giant wealth-creation since the first industrial revolution. Some tech-based wealth creation lived short like crypto. But AI seem to sweeping because its use-value across enterprises and society shows profitability. Therefore, AI is undoubtedly a substantive and deadly game-changer. America’s first billionaire John D Rockefeller controlled 80% of global oil supply at one point. Similarly, Warren Buffet, Elon Musk and others control businesses that are diverse and thus hold monopoly—which means control over technology and products. Even in search engine market Google enjoys an edge.
A big gainer in this year blistering rally in AI-related stocks and a company whose m-cap has overtaken Alphabet’s, is NVidia. It holds around 80% of the high-end AI chip market. Even in Silicon Valley AI titans have complete dominance over others. In the next two decades AI and its paraphernalia are the major players. AI in all certainty is going to drive a new industrial revolution. Along it recolonizes the modes of production and diverse activities, we would also be witnessing new concentrations of wealth and power. Those who control AI and its affiliates would grow richer and richer. On the one hand, we will be witnessing a fraction of people gaining phenomenally, while on the other will perhaps be pushed aside.
AI cannot be the problem-solver of everything. AI is also taken for granted for its neutrality, which is wrong. Those who have higher range and higher levels of AI technology will be controlling the world and thus be exercising power and authority.
Capitalism as a system believes in maximizing profits and in the process galvanizing those who have control over capital enjoy power and authority. While talking or writing about AI, we need to address the capitalist system AI is part of the capitalist system that generates two classes of people and in that a tiny percentage enjoys power and authority, while the majority be pushed aside. The entire gamut is well captured by Steve Jobs: “Innovation distinguishes between a leader and a follower.”
