Artificial Intelligence as an Economic, Environmental, Geopolitical, and Social Transformation

The rapid development of artificial intelligence is often discussed primarily as a technological breakthrough. Such an approach is insufficient because AI is also transforming the allocation of capital, energy, natural resources, labour, and political power. Investment in generative AI and computing infrastructure is increasing rapidly and is increasingly concentrated among a small number of corporations and countries. At the same time, the expansion of data centres creates new electricity and water demands, potentially producing local infrastructure bottlenecks and distributive conflicts. The AI value chain is dependent on geographically concentrated supplies of advanced semiconductors, manufacturing equipment, cloud services, energy, and specialised knowledge. Control over these bottlenecks may give states and corporations structural power that does not derive directly from military superiority. The environmental effects of AI are similarly ambivalent: AI systems consume energy, water, materials, and computing hardware, but may also improve energy efficiency, climate modelling, renewable-energy integration, and environmental monitoring. Finally, AI-enabled automation, including intelligent robotics, may reduce employment in some occupations while augmenting labour and creating new tasks in others. The social outcome of this transformation will therefore depend not only on the technology itself but also on competition policy, infrastructure planning, environmental regulation, social protection, collective bargaining, and the distribution of productivity gains.

Source: arXiv:2609.21632v1 - http://arxiv.org/abs/2609.21632v1 PDF: https://arxiv.org/pdf/2609.21632v1 Original Link: http://arxiv.org/abs/2609.21632v1