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Expert in Development Economies

Artificial Intelligence: A Catalyst for Economic Growth

Artificial intelligence (AI) has emerged as both a technological breakthrough and a powerful economic tool, enhancing efficiency, accelerating task completion, and significantly reducing operational costs. These advancements have led to capital expansion, increased corporate profits, and the rapid dissemination of knowledge across industries.

The growth and evolution of AI, driven by companies such as Google, Meta, and OpenAI, have historically aligned with business, institutional, and individual needs, without posing an existential threat to humanity. While concerns remain regarding misuse and cybersecurity risks, these challenges can largely be mitigated through regulatory frameworks and cybersecurity laws.

The launch of ChatGPT marked a transformative leap in AI capabilities, fueling industrial innovation, workflow optimization, and knowledge acquisition. AI has since become a highly competitive field among nations, with DeepSeek, a Chinese AI model, directly challenging Western AI leadership.

AI Competition: The West vs. China

The rivalry between Western AI giants and China's AI advancements has transformed artificial intelligence into a geopolitical battleground. Former U.S. President Donald Trump prioritized AI in America’s economic strategy, proposing a $500 billion investment in OpenAI’s Stargate AI platform. However, the emergence of DeepSeek, with an infrastructure cost of just $5.5 million, sent shockwaves through the Western AI sector.

  • On its first day of launch, DeepSeek triggered $82 billion in losses across AI-driven businesses in the West.

  • A single trading session saw an $11 billion drop in Western AI stock valuations.

  • To date, Western AI strategies have amassed losses exceeding $1 trillion, raising concerns about their sustainability.

In response, Trump openly acknowledged DeepSeek's disruptive impact, warning that it signals a critical challenge to Western technological dominance.

Economic Viability: AI Infrastructure Costs

The cost of AI infrastructure is a crucial factor in this technological race. Western AI models, such as ChatGPT, require high-cost infrastructure, whereas DeepSeek’s operational expenses are significantly lower.

  • Running one million commands on ChatGPT costs $7.5

  • The same task on DeepSeek costs only $0.2

This vast difference in economic efficiency makes Chinese AI models more scalable and competitive, placing Western AI investments under increased pressure.

The Future of AI: A Growth Engine or an Existential Threat?

Beyond geopolitical rivalries, a fundamental question remains: What will AI’s long-term impact be on economic and knowledge development?

The rapid evolution of AI—seen in the transition from ChatGPT-3.5 to ChatGPT-4—demonstrates a pattern where newer models render previous versions obsolete. This trend extends beyond OpenAI, affecting AI systems developed by Meta, Google, and other industry leaders.

Concerns Over AI Autonomy

Scientific research has revealed that AI models can communicate independently without human intervention. This revelation has prompted leading AI researchers to call for a temporary halt in AI development, citing potential risks to humanity.

AI has not yet reached General Artificial Intelligence (GAI)—the stage where AI systems become fully autonomous, capable of decision-making beyond human control. However, if GAI is achieved, it could pose serious risks, as its decision-making processes might bypass human oversight, leading to unforeseen consequences.

Regulating AI: A Global Imperative

As AI continues to evolve and shape global economies, ensuring responsible AI development and regulation has become a critical necessity. The debate over AI’s potential benefits and risks is no longer theoretical—it is an urgent issue requiring global cooperation, foresight, and robust ethical frameworks.

Whether AI remains an engine of economic growth or transforms into an uncontrollable force will depend on how nations regulate and develop AI technologies moving forward.

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