Follow the Money to Understand the Risks of AI – News Karnataka

In a world where artificial intelligence (AI) is rapidly advancing, the risks posed by the economic incentives driving innovation are becoming increasingly apparent. A recent study conducted by experts at UCL sheds light on how major tech platforms like Amazon are exploiting their algorithmic technologies to extract economic rents from users and suppliers.

The study reveals that platforms like Amazon have shifted their focus from providing value to users towards maximizing profits through advertising services. By prioritizing paid advertising placements over organic search results, these platforms are able to extract rents from suppliers and users, leading to higher prices and lower quality products being promoted.

Amazon’s advertising business, in particular, has come under scrutiny for misleading users by displaying sponsored products that are more expensive and lower in quality compared to organic search results. This practice not only harms users by deceiving them into clicking on inferior products but also negatively impacts suppliers who are forced to pay for better rankings.

The study highlights the importance of regulating the economic incentives driving AI innovation to prevent the exploitation of users and suppliers by tech giants. By implementing measures such as interoperability and disclosure requirements, regulators can ensure that the benefits of AI technology are shared equitably among all stakeholders.

As the AI industry continues to evolve, it is crucial to address the economic risks associated with the deployment of algorithmic technologies. By focusing on creating a more competitive and inclusive market, regulators can help shape the future of AI innovation in a way that benefits society as a whole.