The potential collapse of the AI sector may not concern everyone, but it has become a significant issue that could affect taxpayers, similar to the 2008 financial crisis. The financial fallout from that crisis was substantial, costing UK taxpayers about 23 billion pounds, equivalent to 700 pounds each, while US taxpayers faced a burden of approximately $498 billion. Currently, major AI companies are valued at over 2 trillion pounds, significantly more than banks, and are linked through extensive financial relationships worth hundreds of billions. Despite a report indicating that 95 percent of Generative AI trials in companies are failing, the UK government is committed to investing heavily in AI, believing in its potential benefits for education, defense, and healthcare.
This widespread integration of AI into public services has made it an essential part of daily life, raising concerns about the risks of its failure. Just as the financial system’s collapse necessitated bank bailouts, the deep integration of AI into vital sectors could compel similar actions if AI entities face financial troubles. The reliance on these companies for essential services, like healthcare and education, means their failure could leave taxpayers responsible for the consequences. Presently, investments in AI continue to surge, with supporters arguing that despite failures, funding is crucial for developing artificial general intelligence (AGI), which could transform lives. However, skepticism exists regarding AI’s potential for true intelligence, as highlighted by experts in the field.
Critics suggest the ongoing AI expansion may hinge on the optimism of its pioneers, who are deeply invested in its future. This optimism could be seen as a gamble that they expect taxpayers to support. If this gamble fails, the repercussions could lead to cuts in essential services or bailouts for overexposed pension funds, raising questions about the safety nets for taxpayers amid this evolving landscape. As AI firms promise a transformative future, the lack of protections for taxpayers against potential failures remains a critical concern.