Three Pathways to Distributed Power in the AI Economy

RadicalcChange Blog

On Jan 15, 2025 at Stiftung Mercator in Berlin, RadicalxChange Foundation, along with partners Global Solutions Initiative and Sciences Po Technology and Global Affairs Innovation Hub, co-hosted a side event to the Paris AI Action Summit. We focused on the future of collective bargaining in the context of the AI revolution. The discussions helped to advance our thinking in several important ways. Here are some quick initial reflections.

History suggests that following significant technological breakthroughs, individuals and communities often endure temporary but harmful losses of economic bargaining power. (For example, real living standards declined in industrializing countries between the mid-18th and the early-to-mid 19th centuries, in part because individuals’ contributions to vital productive processes became more interchangeable and therefore lacked bargaining power.) On a longer arc of history, new technology’s benefits usually accrue to whole societies, but such short-term social disruptions partly offset those benefits and frequently destabilize societies. It is therefore important to strategize toward achieving social equilibrium quickly, robustly, and without undermining the processes of technological development.

Power rebalancing after technological breakthroughs occurs through at least three pathways: technological, political, and social. Technological rebalancing occurs when the dissemination or cheapening of the relevant technology undermines the advantage of the technology’s owners (as in the personal computer and software revolutions). Political rebalancing occurs when direct state interventions check the rights of businesses to exploit the new technology (as in the 18th century, when speech controls and intellectual property statutes limited the power of printing press owners). Social rebalancing occurs when social or labor organizations form a collective counterpower, achieving an economic foothold vis-a-vis the technology’s owners (as in the late part of the industrial revolution). These pathways are not mutually exclusive, possess unique benefits and drawbacks, and are more or less suitable in different societal and technological situations.

What might these modes of rebalancing look like in the nascent AI revolution? Which are likeliest to mitigate losses of bargaining power and/or uphold the integrity of individuals and communities? We will first define, then critique and evaluate three pathways.

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