Another thing I don’t see here is the importance of being in the supply chain of AI products. Countries with compute clusters whose compute they export will gain as AI becomes more ubiquitous, countries that are next importers of AI services with no stake in the chain will be harder hit. Even if AI is not substituting labor, but is only necessary productivity boost to keep up with the productivity of other workers, you end up paying a fee from each worker of yours for AI (mostly to developed countries). This may not be a big deal if open source models remain competitive, compute needs go down with algorithmic advancements, etc. but right now all countries are paying mostly US for AI use, and if it remains the case, US will benefit, as will Netherlands, Taiwan and others directly in the supply chain; others, less so.
Hi Dushan. I cover this at a high level under “But impacts will be uneven” heading. I agree with you that countries in the supply chain will benefit and others less so.
Another thing I don’t see here is the importance of being in the supply chain of AI products. Countries with compute clusters whose compute they export will gain as AI becomes more ubiquitous, countries that are next importers of AI services with no stake in the chain will be harder hit. Even if AI is not substituting labor, but is only necessary productivity boost to keep up with the productivity of other workers, you end up paying a fee from each worker of yours for AI (mostly to developed countries). This may not be a big deal if open source models remain competitive, compute needs go down with algorithmic advancements, etc. but right now all countries are paying mostly US for AI use, and if it remains the case, US will benefit, as will Netherlands, Taiwan and others directly in the supply chain; others, less so.
Hi Dushan. I cover this at a high level under “But impacts will be uneven” heading. I agree with you that countries in the supply chain will benefit and others less so.