Human resources and technology concept for AI support of teamwork.
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The rise of artificial intelligence (AI) has been breathtaking in both its speed and impact. According to Goldman Sachs, investment in AI is expected to reach $100 billion in the U.S. and $200 billion globally by next year. In the private equity sector alone, investments in generative AI (GenAI) amounted to $2.18 billion last year – twice as much as the previous year.
But while we often hear about the limitless promises of AI – and we should – we also need to pay more attention to the careers, lives and communities it will disrupt, including those that have been left out. For example, according to a recent McKinsey study, Black Americans are 10% more likely to have jobs designated for AI automation. Additionally, the same study estimates that AI will destroy 4.5 million jobs for black workers. This disruption has the potential to impact billions of dollars in Black economic potential and growth. If current trends continue, the new wealth created by GenAI alone will widen the racial wealth gap by $43 billion per year, according to McKinsey.
We have already seen firsthand how the rapid adoption of technology can exacerbate gaps and create new divisions. One only has to look at the development and introduction of computers and the Internet. In 1987, economist Robert Solow claimed: “You can see the computer age everywhere except in the productivity statistics.” Today we almost assume how much productivity the digital age has brought. But this digital age has also created a digital divide that is exacerbating racial economic disparities. And one of the consequences of failing to bridge this digital divide and ensure broadband access for Black and other communities without access to resources and opportunities is the limited use of these tools.
This way you can prevent another wealth gap
As we stand at the beginning of this next revolution in AI and its first waves of value creation, our urgent task is to prevent another gap. We can achieve this by giving everyone the opportunity to participate and lead in this evolving sector so that our economy can achieve greater benefits. This starts with an infrastructure that supports AI empowerment for all, including education about AI tools, access to the internet and computing power.
A model for this is the work of the Student Freedom Initiative (SFI). As a first step, we must commit to eliminating the existing broadband digital divide. SFI has worked hard to close the digital divide in Black communities, including historically Black colleges and universities (HBCUs), 82% of which are located in broadband deserts. This is a critical gap that must be filled to provide the next generation of diverse leaders with the resources, training and technical access they need to master this evolving technology.
We also need to redouble our efforts to provide education about these tools. A combination of critical thinking and technical skills is increasingly becoming a prerequisite for effective interaction with GenAI. Our education system, particularly secondary and higher education institutions, has a key role to play in equipping students with these essential skills.
In collaboration with Stats Perform, a global leader in AI solutions for the sports industry and a portfolio company of my global investment firm Vista Equity Partners, SFI launched an AI in Basketball course at Morehouse College last year. This course provided practical guidance on AI use cases that helped prepare students to be leaders in the field. It also offered students the opportunity to apply what they learned in a real-world setting, thereby gaining experience and competitive resumes for an AI career. We will soon expand these courses to other HBCUs, providing access to this growing industry.
Another notable example of this is working at internXL, which offers opportunities such as free training and certifications in artificial intelligence, data science and machine learning, including access to over 500 AI training courses. The internXL initiative also connects highly qualified HBCU students with AI experts and employers for internships, allowing them to gain hands-on experience in the field. And internships are crucial – studies show that an internship with a hiring organization or in the same field is one of the most important differentiators when selecting qualified candidates. This work closes access gaps and ensures underrepresented talent thrives in the fast-growing and in-demand field of AI.
Finally, we also need to ensure broad access to computing power or processing power to run these new tools and their applications. If we use the example of smartphones, computing power has been made possible by telecom organizations updating their infrastructure to support 4G, 5G, and LTE – all of which have been underinvested in Black communities. If we want to fully realize the potential impact of AI on our economy, all communities must have access to these tools and the infrastructure that underpins the technology. This includes computing power, required energy sources, as well as large language models and other machine learning and reasoning tools.
Economic toll
We know that the racial wealth gap will cost the U.S. economy $1 trillion to $1.5 trillion between 2019 and 2028. Imagine what it would mean for the economy if we took action to prevent AI from becoming a new economic wedge and instead made it a rich source of generational wealth. What if we could ensure access to these tools for communities around the world? As long as we take appropriate steps to prevent these tools from replicating and reinforcing racial bias, the innovation and economic growth it would spur could close many gaps and create prosperity for all.
With the current development of AI, there will be three distinct waves of opportunities through which value will be captured. We are already seeing the first wave of value creation from which hardware providers are benefiting. The second wave will go to super scalers Microsoft, Google, oracle and other large companies capable of offering comprehensive data processing connectivity. The third wave will benefit enterprise software providers that offer AI and GenAI solution sets in addition to their existing products. These are three different industries where we need to focus our equity efforts to impact the long-term growth of AI and GenAI.
The good news is that, unlike the digital revolution, we have the luxury of foresight. As AI continues to evolve and established companies and new startups scale products, develop features and add value at every stage, we must work to ensure that everyone has access to the incredible benefits of AI. If we fail, we will neither be able nor capable of achieving its full potential. As we stand at this crossroads, we must think broadly and act decisively to ensure we build the infrastructure to support the advancement of AI and GenAI.
Robert F. Smith is founder, chairman and CEO of Vista Equity Partners. He is chair of the Student Freedom Initiative (SFI) and Carnegie Hall, founding director and president of the Fund II Foundation, and co-director of the Southern Communities Initiative (SCI). In 2019, Smith erased the student debt of approximately 400 Morehouse College graduates and was named one of TIME 100's Most Influential People in 2020.
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