Global efforts to develop artificial intelligence safely and equitably face significant obstacles from increasing economic nationalism. Leaders at a major international gathering warned that AI’s capital, energy, and data requirements demand cooperative approaches, but trade tensions threaten to fragment development efforts. This geopolitical dimension adds complexity to already challenging questions about managing AI’s labor market impacts.
New research shows that 60% of jobs in wealthy nations and 40% globally will be affected by AI in various ways. Early data suggests approximately one in ten jobs in advanced economies has been enhanced by AI, generally resulting in better compensation. However, realizing AI’s full potential may require international cooperation that seems increasingly elusive in the current political climate.
Young workers face especially difficult prospects as AI transforms entry-level employment. The tasks that define starter positions are precisely those most vulnerable to automation, creating barriers to youth employment. This generational challenge could affect career development patterns and social mobility for years to come, with consequences extending well beyond individual job seekers.
Workers in middle-income positions confront their own vulnerabilities. Those whose jobs remain unchanged by AI may experience relative economic decline, seeing wages stagnate without the productivity enhancements that benefit AI-augmented workers. This bifurcation threatens to erode the middle class and increase inequality, raising questions about social cohesion and economic stability.
The regulatory landscape remains underdeveloped relative to AI’s rapid advancement. Concerns about safety, inclusivity, and equitable benefit distribution persist without clear answers. Labor representatives emphasize the need for worker participation in AI governance, advocating for models that share productivity gains broadly. The international dimension proves particularly vexing, as AI development requires massive resources while trade barriers and economic nationalism rise. Without cooperative frameworks for sharing capital, energy, and data, AI’s benefits may be limited while its disruptive effects multiply.
International Cooperation on AI Threatened by Rising Trade Tensions
