A groundbreaking analysis warns that the rapid proliferation of artificial intelligence is intensifying existing inequalities and threatening the foundations of democracy.

As the world reacts to America’s recently announced AI Action Plan, a new report from the AI Now Institute is prompting renewed scrutiny of the political and economic forces behind the explosive growth of AI, raising sharp questions about who actually stands to benefit from the current AI boom.

As discussed by AI Now directors Amba Kak and Dr Sarah Myers West, their report “Artificial Power” asserts that AI’s rapid expansion is less about public good than about enabling a handful of Big Tech giants (they know who they are) to consolidate unprecedented power and reshape society in their interests.

The report challenges popular narratives suggesting that AI’s trajectory is inevitable or universally beneficial, warning that the current industry direction threatens to exacerbate inequality, undermine democracy, and erode workers’ rights.

According to Kak and West, claims that AI will generate productivity gains and solve society’s biggest problems mask a reality in which profits and control accrue to a small cohort of firms, while risks —ranging from environmental degradation and algorithmic discrimination to the dismantling of public institutions — are increasingly socialized. The escalation toward building ever-larger AI models, frequently described as a race toward artificial general intelligence (AGI) before 2030, is buoyed by vast government subsidies and, they argue, a lack of sufficient oversight.

The AI Now report also highlights deep concerns about the fundamental business models of leading AI firms, pointing out sky-high valuations despite massive operational losses and the absence of clear routes to profitability.

Kak and West warn that these dynamics mirror past patterns of tech industry consolidation and are neither natural nor irreversible. Instead, they are the result of deliberate choices prioritizing the interests of the tech oligarchy over the public. They call for policymakers and advocates to resist the myth that powerful AI is unavoidable, to demand structural reforms that prevent monopolistic dominance, and to reimagine technology in service of a more just, sustainable, and democratic future.