‘The number of US companies that see artificial intelligence as a threat has jumped more than fivefold over the past two years, the Financial Times has reported, citing a survey of corporate filings.
More than half of America’s largest companies (56%) cited AI as a “risk factor” in their most recent annual reports, the outlet cited research by Arize AI, a platform that tracks public disclosures by large businesses.
In 2022, the number stood at just 9%, FT noted.
Among the AI risks mentioned in the financial reports are greater competition fuelled by concerns that some firms will be faster at exploiting the technology than others. Also high on the list were reputational or operational issues stemming from ethical concerns about AI’s potential impact on human rights, employment, and privacy.
“AI may not always operate as intended and data sets may be insufficient or contain illegal, biased, harmful or offensive information, which could negatively impact” a company’s earnings and reputation, telecoms group Motorola said.
The media and entertainment industry emerged as the most concerned, with more than 90% of companies, including Netflix and Disney, seeing fast-growing AI systems as a business risk this year.
The impact of generative AI, a type of artificial intelligence capable of generating text, images, and videos, is already reportedly being felt across an array of industries, FT wrote. More than two-thirds of the companies that discussed that specific type of AI identified it as a risk, it notes.
The companies that highlighted the potential benefits of AI spoke of cost efficiencies, accelerating innovation, improved customer service, and claims analysis.
As many as 40% of companies globally use AI, according to Exploding Topics, a platform that identifies early trends by analysing searches and mentions on the internet. AI is most actively used in India (about 59% of companies), according to the platform. In Russia, roughly 32% of firms were already using AI to perform tasks as of late 2023, according to the National AI Development Strategy.’
The below is from the Socialist Standard January 2024
‘Built into capitalism is competition between states and trading blocs for markets, raw material sources, trade routes, and strategic points to protect these. In fact capitalism is an economic system based on a competitive struggle for profits.
Military spending by states is an aspect of this competition as even in diplomatic negotiations might is right, meaning that states have to spend as much as they can afford on weapons of war. This waste of resources on instruments of death and destruction and training people how to use them is unavoidable under capitalism. When diplomacy reaches an impasse, as it tends to when the stakes for a state are high, this competition leads to wars, often proxy wars fought by local puppets of the major powers.
This competition also severely restricts what governments are able to do about the current climate crisis. If a state does too much to combat it while others don’t, it risks undermining its own competitiveness vis-à-vis other capitalist states and trading blocs.
It’s not just certain capitalist corporations such as fossil-fuel companies that are, or cause, the problem; it’s the whole capitalist system of production for profit. Governments can’t adopt policies to bring about a sustainable economy because that would be to go against the nature of capitalism as a system of unending capital accumulation out of profits, as reflected by rising GDP. A sustainable system of production will only be possible in a world socialist system when there will no longer be the economic pressure to make and accumulate profits as more and more capital.
No effective and lasting measures will be able to be implemented until the Earth’s natural and industrial resources have become the common heritage of all humanity. Then we can tackle this problem in a rational way without profit considerations or vested interests. All working people throughout the world have a common interest in getting rid of capitalism and nation-states and their frontiers. In a frontierless post-capitalist society based on the common ownership and democratic control of the world’s resources, ie, socialism properly understood, we will all be ‘citizens of the world’. Then there will be no waste of armaments or the threat — and reality — of war.’
https://socialiststandardmyspace.blogspot.com/2024/01/what-competition-for-profits-means-2024.html
The below is from the Socialist Standard January 1987 i(Edited)
“If competition is such a wonderful and desirable thing, why does everybody try so hard to avoid it?”. For example, when solicitors lose their monopoly in house conveyancing, opticians lose theirs in selling spectacles, or shopkeepers hear that a supermarket is to be built nearby, do they say “Good! Just what we need: the icy blast of competition”? They do not, instead they protest bitterly and do everything they can to preserve the status quo.
Although governments try to encourage competition within their own frontiers they assist their own industries to avoid it in internationall trade by loading the dice in their favour. The governments of the EEC protect their own farmers from competition from abroad by erecting tariff barriers and subsidising their production. These subsidies produce such mountains of food that the EEC can sell it on world markets at rock-bottom prices – butter sales to Russia are an obvious case. The American government denounces these subsidies because they keep inefficient EEC farmers in business whereas American farming is extremely efficient and could easily undercut EEC farming if only it were given the chance.
Does this mean that the United States is all for free trade? Only in those industries where it can win, such as farming. It is a different story when it comes to steel and textiles so they protect those industries with barriers against Imports. Most serious is the penetration by Japan of American home markets in cars, electronics and consumer goods. The United States’ trade deficit with Japan was over 50 billion dollars last year and members of Congress, business leaders and trade unions are demanding legislation aimed at reducing Japan’s exports to the United States.
Needless to say the Japanese are not in favour of this but they want to have it both ways – free trade for their exports but every obstacle placed in the way of imports from other countries. For example, Scotch whisky is subject to a level of taxation which makes it much more expensive than home produced spirits. Why don’t these other countries simply keep out Japan’s exports? They are afraid that such a move would spark off worldwide tit-for-tat protectionism with the resulting collapse in world trade. The cure would be worse than the ailment and the Japanese government is taking advantage of this fear.
Groups of governments sometimes band together into a cartel or price-fixing ring to avoid competition among themselves. For years the Organisation of Petroleum Exporting Countries (OPEC) shared out most of the world oil market. Each member-nation was allocated an agreed production quota of oil and no more. This year there has been a drastic fall in oil prices caused by the world slump, resulting in a sharp fall in demand, plus the entry of North Sea oil which is not controlled by OPEC. This fall in price has meant less income for OPEC members and some of them have been breading the agreement by increasing production to try make good the lost revenue.
This is what usually happens with governments or companies which organise themselves into a cartel. They are all for cartel when trade is booming and they can carve up the market but when trade is bad they will break ranks and look after themselves. OPEC has just reached a temporary agreement and the price of oil has started to rise again but no one knows what will happen in 1987.
Nevertheless, western governments do try to avoid monopolies within their own countries. As the executive committee of the national capitalist class a government must look after the interests of that class as a whole and not just one section of it. If a monopoly was allowed in an industry then the other capitalists will feel that they may be held to ransom when they purchase from the monopoly. But surely the soon-to-be privatised British Gas is a monopoly, the very thing the government wants to avoid? There are two reasons for this contradiction. The first is that the gas industry cannot really be split up into several competing companies for practical reasons, among them the cost of setting up alternative nationwide installations. The second is the political factor which is that the government sees wide share ownership as a vote catcher at the next general election end the privatisation of British Gas gives it the opportunity to achieve this aim.
This episode has provided an example of the double standards used by politicians. Tory MP Michael Forsyth, a free market zealot. argued that privatised gas would not be a monopoly as it would have to compete with electricity, oil and nuclear power. This is like arguing that if some company owned the entire meat industry it wouldn’t be a monopoly because it would have to compete with fish and chicken.
Companies sometimes need to grow if they are to survive. How could a company meet its competitors if it merely stands still while they grow? This need partly explains the recent merger-mania which saw huge companies being taken over by others.
How does this fact of life in capitalism square with the government’s obsession with promoting small businesses and its frequent use of the Monopolies Commission to prevent the mega-mergers which are necessary to enable British capitalism to compete internationally? The simple truth is that many of those who are heavily into capitalism, like some of the free marketeers, don‘t under- stand the basic laws of the system, one of which is that while small may be beautiful in business, big is infinitely more successful.
The supporters of competition claim that it is of benefit to society because it eliminates wastefulness. In fact it is the cause of massive waste of humanity’s time and energy.
And just look at the hordes of companies eagerly competing to supply us all with double glazing, fitted kitchens, and the like, with armies of salespeople chasing after the same order and all of them selling exactly the same product. This spectacle is repeated all over the world as millions of useful human beings engage in this wasteful duplication of effort. just how does this benefit society?
So competition isn’t what it’s cracked up to be. Even the capitalists and politicians only regard it as a necessary evil in the scramble for profit and avoid it whenever they can. Certainly it has nothing to offer the workers except the opportunity to become one another’ s enemies over their exploiters’ quarrels and which have nothing to do with them. Socialists work for a society in which the watchword will be co-operation and where capitalism’s competition will seem as strange and awful as we regard cannibalism today.’
Vic Vanni
https://www.worldsocialism.org/spgb/socialist-standard/1987/1980s/no-989-january-1987/competition/