AI could become the ‘new steel’ as overcapacity risk goes unnoticed

July 24, 2024
Policymakers in the U.S., Saudi Arabia, Japan, the U.K., and the EU have announced huge public investments in artificial intelligence, which follow large private sector investments.
Hu Guan – Xinhua – Getty Images

In the 19th century, government officials came to understand that steel would be essential to both economic growth and national security. Thus, they devised policies that could sustain local production as well as prevent foreign producers from competing in domestic markets.

While steel and AI could not be more different, many economists view AI as a general-purpose technology that can stimulate both economic growth and innovation. Hence, policymakers must ensure domestic capacity.

However, many government officials also already see AI as a critical technology essential to both national security and economic progress.

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