\u201cYou need prior education, you need electricity, you need digital infrastructure\u2009.\u2009.\u2009.\u2009There is a potential for this to amplify differences in the world,\u201d Tangen said from his New York office overlooking Bryant Park.<\/p>\n
\u201cThere is a potential for splitting societies, and there is a real potential for splitting the world into the countries which can afford it and the countries which cannot afford it.\u201d<\/p>\n
The 59-year-old executive said that different approaches to regulating AI<\/a> could also widen growth rates between Europe and the US.<\/p>\n \u201cHere in this country (the US), they\u2019ve got a lot of AI and not so much regulation. In Europe, there is not so much AI but a lot of regulation,\u201d he said, arguing that the EU\u2019s tendency to over-regulate could hold back economic growth.<\/p>\n The former hedge-fund investor said governments and large companies would soon have to grapple with the consequences of uneven adoption, from labour-market disruption to questions of access and fairness.<\/p>\n While AI promises significant productivity gains \u2014 he estimates as much as 20 per cent within his own organisation \u2014 Tangen said policymakers risked falling behind the speed of technological change.\u00a0<\/p>\n \u201cWe live in a time where it\u2019s totally futile to try to predict anything,\u201d he said. \u201cThe focus now has to be on agility, culture and preparing societies for what\u2019s coming.\u201d<\/p>\n Tangen<\/a> remains an AI optimist. He said that while the extraordinary boom in AI investment carried many of the hallmarks of a bubble, in the long term that might ultimately prove \u201cnot too bad\u201d for the global economy.<\/p>\n He said that AI was a \u201cpretty hot space\u201d at the moment, driven by huge enthusiasm and rapid capital inflows, yet also represented a \u201cmassive societal transformation\u201d that made traditional valuations hard to assess.<\/p>\n Even if parts of the sector were overinflated, Tangen said, the surge of capital into AI would still fund technologies that improve productivity.\u00a0<\/p>\n \u201cIf it is a bubble, it may not be such a bad bubble,\u201d he said, pointing to potential long-term gains from advances in automation, data processing and model development.<\/p>\n The challenge for investors, he added, was distinguishing genuine breakthroughs from hype in a market dominated by a handful of powerful platform companies.<\/p>\n Recommended<\/p>\n
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