
Artificial intelligence (AI) is advancing at an unprecedented pace, with the recent developments in large language models (LLMs) playing a critical role. While AI’s potential is vast, social, regulatory and ethical concerns demand attention. A balanced approach is essential, from the consolidation of research by big tech companies to the risks of addiction and misinformation. As AI systems become more ubiquitous, tech professionals and business leaders are uniquely positioned to ensure that AI innovation enhances human life and prioritizes societal well-being.
Evolution of AI Capabilities and Applications
The evolution of LLMs, such as OpenAI’s ChatGPT and Google’s Gemini, has accelerated AI adoption among enterprises. In 2023, large global enterprises allocated over $15 billion to generative AI solutions, accounting for roughly two percent of the worldwide enterprise software industry in just two years. To contextualize that growth, it took the previous significant transformation—software-as-a-service (SaaS)—four years to attain the same expenditure benchmark.
This rapid growth has, however, led to social, regulatory and ethical challenges that demand immediate attention from AI practitioners and regulators alike to ensure the long-term success of AI technologies.
Public Opinion and Social Consequences
Three primary factions define the public view of AI: Alarmists, enthusiasts and skeptics. Alarmists worry about job displacement and loss of privacy, while enthusiasts see AI as a “magic wand” for solving society’s challenges. The third group, skeptics, question the transformational power of AI and are wary of its promises.
These differing viewpoints highlight the dual character of AI: While technology can improve output, it can also aggravate already-present social problems, including inequality and bias. AI tools can spread misinformation (e.g., deepfakes), erode public trust and pose a pernicious threat to public conversation. When designing solutions, it’s essential for AI professionals to evaluate how the models will interact with diverse user groups and ensure systems promote inclusivity. Similarly, investing in explainable AI—techniques that enable humans to understand and interpret AI results—will go a long way in building public trust.
If unchecked, AI has the potential for use as a weapon for mass destruction, from manipulating people at large to accelerating the research and development of nuclear, biological and chemical weapons. To avoid misuse, it’s essential for AI leaders to incorporate necessary safety protocols (e.g., human-in-the-loop and access control) and regular audits as part of development cycles.
In addition to direct pitfalls, it’s also vital to acknowledge AI’s unseen expenses. Even if many AI-powered services seem “free,” consumers typically pay with their personal data. Not only do companies make money by improving their models based on consumers’ usage, but they also sell the data to third parties. This commodification of personal information presents serious privacy issues. For example, 2023 saw a 72 percent increase in data breaches since 2021, with an average data breach cost of $4.88 million. It’s imperative for companies to invest in a conscientious approach to data handling, including fraud prevention and privacy techniques like encryption and anonymization, to ensure consumers do not pay the price of innovation.
Ethical Considerations
AI technology is not inherently neutral. Sometimes, its design is intended to support actions that benefit corporate interests, such as driving higher usage that may encourage addiction. One of the most troubling examples is the use of AI on social media to construct echo chambers whereby users are only exposed to content supporting their opinions, intensifying societal polarization. Driven by AI algorithms that spiral users down a rabbit hole, these platforms’ addictive nature begs severe ethical questions regarding mental health and well-being.
Ethical use cases are subordinated to profit-maximizing activities without rules guiding AI’s evolution. It’s no surprise that thousands of lawsuits have been filed against major social media platforms, including Meta, TikTok, Snapchat, and Google, for being addictive and dangerous. Transparency and responsibility must be top corporate priorities. It’s crucial for companies to set “guardrails” to stop overuse, actively provide diversity in content recommendations, and educate consumers on the drawbacks of AI tools.
Additionally, it’s vital for tech leaders and developers to foster a culture of accountability, where AI’s potential for harm is openly discussed and proactively mitigated rather than being addressed as an afterthought.
Regulatory Challenges in AI Development and Application
AI’s rapid growth has outpaced existing regulations. In addition to the failure to mitigate social and ethical concerns, the lack of clear legal frameworks threatens free market trade. A leading obstacle in AI innovation is the need for high capital. Only a few large companies, such as Microsoft, Google and Meta, can partake in the research, resulting in an oligopolistic market. This deters participation from smaller firms, limits competition and slows down innovation.
Even if innovation occurs in smaller companies, tech giants acquire or stifle them. One leading example is Microsoft’s investment in OpenAI, founded as a non-profit, and the acquisition of Inflection AI that sparked anti-trust investigations from UK regulators. Similarly, lawsuits were filed against Meta for its monopolistic practices over the purchase of Instagram and WhatsApp. In one such lawsuit, the U.S. District Court successfully ruled against Google for illegally using anti-competitive business practices to squash competition and hamper innovation.
AI innovation is outpacing laws and regulations, allowing companies to operate with minimal oversight. Initiatives such as the European Union’s AI Act seek to impose stricter guidelines, but are packed with loopholes. On the other hand, United States, a leader in AI innovation, does not have a comprehensive federal AI framework. Given the pace of AI innovation, it’s time for countries to develop international and country-specific regulations to ensure that AI innovations do not get out of control. The responsibility, however, doesn’t solely lie with policymakers. It’s vital for tech experts to actively engage with regulators to meaningfully shape the laws that govern AI. Moreover, as governments introduce new legislations, business leaders need to stay informed, educate their employees, and ensure compliance.
Striking a Balance
The social, legal, and ethical consequences of AI are multifarious. Although it could revolutionize business and enhance the quality of life, the lack of rules allows for abusing this tool—the development and application of AI benefit from prioritizing society’s well-being.
Only government laws, business accountability and consumer knowledge can help accomplish this. Shaping a future where technology helps mankind, not vice versa, depends on a balanced approach to addressing AI’s benefits and challenges.