Artificial intelligence (AI) is at an inflection point. Adoption of the technology is occurring at lightspeed, largely propelled by interest in generative AI. As entire industries like healthcare and capabilities like logistics and supply chain face transformative moments, government leaders are being challenged as well. They need to balance AI’s potential benefits while tackling the challenges it brings to society and the economy.
We collaborated with the World Governments Summit to create a comprehensive roadmap to help governments navigate the complex AI landscape. The report, “AI: A Roadmap for Governments,” encourages a multidimensional strategy, including policy development, infrastructure investment, talent building, and international collaboration.
The case for immediate AI oversight for businesses
Technologies like large language models (LLMs) and generative AI have made AI more accessible and useful to individuals and businesses, reaching a point where it feels indispensable. In fact, 96% of CEOs recently surveyed by the Oliver Wyman Forum and New York Stock Exchange said they consider AI an opportunity for their business and more than 40% feared not moving fast enough deploying solutions and falling behind the competition. At a consumer level, access to programs like ChatGPT have reshaped public perception, boosting awareness of AI’s transformative potential. But it is critical to note that if left unchecked, emerging AI systems could affect privacy, disrupt economic structures, and even influence global stability.
The risks behind AI’s rapid growth for governments
Governments are beginning to recognize that while AI can transform industries, it also poses significant risks that require proactive management. Our report identifies four concerns:
1. Job displacement
AI-driven automation could disrupt labor markets, with Goldman Sachs estimating up to 300 million jobs potentially affected worldwide. Though AI creates new roles, the shift may increase unemployment and hardship in certain sectors.
2. Data privacy and security
AI’s reliance on data raises serious privacy concerns. Without strong data governance, AI could compromise personal privacy and lead to potential misuse in how information is collected, stored, and shared.
3. Bias and misinformation
AI models inherit biases from their training data, which can reinforce social inequalities. AI-generated deepfakes, meanwhile, pose a growing threat by making it difficult to distinguish fact from fiction.
4. Environmental impact
Supporting large-scale AI models requires significant energy, leading to carbon emissions. For instance, training OpenAI’s GPT-3 model reportedly generated 28 times the carbon output of an average person annually.
Four focus areas to create a robust AI strategy
To address AI’s risks while harnessing its potential, the report highlights several critical areas for governments to prioritize:
1. Policy and regulation
Establishing clear regulations is essential for managing AI’s ethical use, including data privacy, transparency, and accountability. Some governments, including the European Union, are setting guidelines for high-risk AI through policies such as the Artificial Intelligence Act, which governs both foundational models and AI applications.
2. Infrastructure investment
Effective AI adoption requires strong infrastructure, from high-performance computing and reliable data governance to 5G networks. Countries like Saudi Arabia and the United Arab Emirates are investing heavily in data storage and cloud capabilities to support AI’s growth.
3. Talent development and research and development
As AI reshapes job markets, governments must focus on building AI expertise. Programs in Saudi Arabia and Canada, such as AI in education and innovation clusters, are designed to cultivate talent and advance AI research, often through partnerships with universities and the private sector.
4. International collaboration
With AI impacting multiple countries, governments must work together to create shared standards. Initiatives like the Global Partnership on AI (GPAI) and the AI For Good Global Summit promote international cooperation based on fairness, transparency, and accountability.
Focusing on these four pillars can help governments manage AI's challenges while maximizing its benefits for society.
Keeping AI safe through human oversight
AI should always operate under human control, especially in critical areas like national defense and public administration. Human oversight is essential to prevent AI from making autonomous decisions that could have unintended consequences. For example, AI-driven cybersecurity tools require close monitoring to ensure they do not compromise individual rights or privacy.
To minimize risks, our report recommends rigorous testing for AI models before deployment. The US and UK have already adopted this approach, implementing strict assessments to align AI technologies with public safety and ethical standards.
Building a balanced, future-ready AI ecosystem
AI has transformative potential, but governments must actively shape its path to unlock its benefits. By investing in policy frameworks, infrastructure, talent, and international partnerships, governments can foster a balanced AI ecosystem that promotes public welfare and sustainable growth. As this report highlights, the stakes are high, and action is critical. Governments that take proactive steps now will be best positioned to leverage AI's full potential while addressing its risks in an AI-driven future.
Written in collaboration with the World Governments Summit.
