AI’s Growth Paradox

AI is fuelling unprecedented economic optimism, yet beneath the boom lie hard questions on employment disruption, inequality, energy use and governance readiness

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The greatest danger of AI is not job loss alone, but uneven adaptation

The AI seems to have become a dominant force today, influencing economies, societies, and the daily lives of people across the world. The reason lies in its unique ability to process vast amounts of data, automate tasks, predict outcomes, and scale innovations far faster than humans can. Projections indicate that AI could add up to USD 13 trillion to the global economy by 2030. Unsurprisingly, an investment frenzy has followed.

Mega tech companies in the US, such as Nvidia, Microsoft, Meta, and Alphabet, have pumped trillions of dollars into the sector, spanning data centres, hardware such as GPUs, and energy infrastructure. Some of the most reputed and high-profile tech firms, including Open AI and Anthropic, are reportedly considering IPOs that could value them at hundreds of billions. Elon Musk’s rocket company, SpaceX, has reportedly interviewed banks to lead an IPO (New York Times, January 14). ‘These listings are expected to create a massive bonanza for Wall Street and Silicon Valley, with investment banks standing to gain hundreds of millions by facilitating them. According to Ben Horowitz of Andreessen Horowitz, the current boom is bigger than the internet era, driven by unprecedented customer adoption and revenue growth rates never seen before.