The AI Revolution: tech innovation meets a colliding world of power and politics
The AI revolution is unfolding before the world, and amid near non-stop technological innovations businessmen and politicians have been vying for power in recent weeks.
Elon Musk and Sam Altman have emerged as two front runners in the race to control the AI sector in the Western world. However, a recent altercation between both men highlighted not only the power that AI holds and will hold but also the influence that the person leading the charge will have.
Altman and Musk were both involved in the launch of OpenAI in 2015, established as a not-for-profit research organisation. Since its inception, OpenAI has been credited with being at the forefront of the advancement of AI technology and is most widely known for the development of the generative AI chatbot, ChatGPT.
Financial institutions across the world have started to adopt AI in recent years, with the list of use cases constantly growing.
For example, In 2023, research at Sheffield Hallam University suggested that ChatGPT could be used to predict future interest rates through various language models by central bank members.
The research ran through a range of language models using ChatGPT to analyse speeches from Bank of England Monetary Policy Committee members before decisions on interest rates were made.
Most recently, fintechs such as Klarna have started to use ChatGPT to ‘level up’ experiences for shoppers. Klarna integrates the AI plug-in to use its voice response processes to help consumers with queries on products and hand out recommendations based on their personal preferences.
These instances are just a few of the ways the technology is already enhancing the way people live and do business, and it isn’t hard to see why someone would want to be at the top of this sector pulling the strings.
Therefore when Altman attempted to convert OpenAI to a for-profit organisation, Musk criticised the plan. Musk stated that this decision went against OpenAi’s founding mission when he left the company in 2018.
Attempting to block this transformation, Musk opened a lawsuit against Altman and sent an offer to purchase the non-profit for $97.4bn, as reported by GamblingTV.
“It is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time,” said Musk in a statement issued by his attorney, Marc Toberoff. “We will make sure it happens.”
It is worth noting that Musk has his own AI start-up xAI. However, the billionaire’s actions are indicative of a concern that ChatGPT could pose some wider risks if not, in his view, properly managed.
Additionally, Musk has lately become a staple in US politics, working closely with President Donald Trump. While he stresses that his work with the President is strictly for the good of the nation, there could also be self-interest in his actions, while Altman could become more useful to the President as AI develops.
Global stances on AI regulation
Last month, UK Prime Minister Keir Starmer described AI as a “unique chance” to grow the economy and raise living standards. This is a sentiment shared by world leaders. However, there may be another motivation behind Starmer’s statement – a desire to attract international investment to UK AI, and other British business areas for that matter. Solid regulation of AI will prove critical in securing this investment by proving sustainability.
AI has rapidly progressed in recent years, as highlighted by previous examples in the payments industry. A lack of regulation may have helped this by reducing friction between ideas and outcomes.
However, AI is not just being used for good. As seen in the payments industry, bad actors are utilising the technology to commit fraud and other financial crimes, and in many cases are one step ahead of those attempting to protect consumers.
Regulation is one of the ways governments can track AI and ensure that it is being developed for good rather than bad. It would also help soothe public concerns that AI will have an impact on employment, though AI stakeholders have stressed repeatedly that this is not a risk.
Payments’ AI perspectives
When Payment Expert travels to trade shows, such as Pay360 and Money20/20, as well as hosts its numerous editions of the Payment Expert Summit, it consistently listens to conversations on regulation.
A typical argument is that regulation should be global and uniform, but somewhat predictably, different countries have different ideas and political agendas and this was very apparent last week.
In a move which caught tech and business headlines across the world, the UK and US snubbed an international agreement on AI promising to ensure the technology is “open, inclusive and transparent”.
France, China and India, among others, signed the agreement while attending the AI Action Summit in Paris, setting out a globalised approach to the technology’s development that “promotes accessibility to reduce digital divides”.
A Downing Street spokesperson said the UK opted against the document as it “did not reflect the UK’s policy position on opportunity and security” and “didn’t provide enough practical clarity on global governance”.
The US, which has taken a solitary approach on many issues since Trump took office, raised concerns over language calling for “inclusive and sustainable AI”.
This came just a couple of weeks after Trump publicly stated that US tech firms should up their game after China’s DeepSeek-R1 model launched, though he did also say that American tech could benefit from this new solution.
At the Paris Summit, US VP JD Vance warned attendees that overregulation of AI “could kill a transformative industry just as it’s taking off” and that “pro-growth AI policies” should be prioritised over safety.
The UK and the US are going down their own paths when it comes to AI regulation, partially in the hopes of attracting AI investment but also likely wanting to see their respective national sectors secure global leadership.
However, it is hard to see how without the commitment from every country global regulation will be successful, leaving the future of AI regulation up in the air.
February 17, 2025 at 11:21AM
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Kieran O’Connor