Concept of human resources and technology integrated with AI to foster collaboration.
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The rapid advancement of artificial intelligence (AI) is remarkable in both its speed and effect. Projections indicate that investments in AI will reach $100 billion in the United States and $200 billion globally by next year, as per data released by Goldman Sachs. Private equity investments in generative AI (GenAI) alone surged to $2.18 billion last year, doubling the figures from the year before.
While there’s much excitement surrounding the transformative potential of AI, it’s crucial to consider the careers, lives, and communities that may face disruption, particularly those historically marginalized. A recent McKinsey report reveals that Black Americans are 10% more likely to be employed in jobs that could face AI automation. Furthermore, the study forecasts that AI may eliminate 4.5 million jobs held by Black workers, potentially resulting in a multibillion-dollar setback to Black economic advancement. McKinsey estimates that, if trends continue, the wealth generated by GenAI could widen the racial wealth gap by $43 billion every year.
The swift uptake of technology has already highlighted issues of inequality and has sometimes deepened existing divides. Historical events like the launch and proliferation of computers and the Internet serve as a testament. Economist Robert Solow noted in 1987 that “the computer age is everywhere except in productivity statistics.” Today, we hardly question the productivity boosts attributed to the digital era, which has, however, also intensified the digital divide, worsening racial wealth disparities. Our inability to effectively tackle this divide and ensure broadband access for Black communities and others with limited resources has hampered engagement with emerging technologies.
How can we mitigate increasing wealth disparity?
As we embark on this new phase of AI and the initial creation of value, our pressing task is to bridge existing disparities. This can be achieved by ensuring that everyone is given the opportunity to engage and lead in this rapidly changing landscape, fostering greater economic gains. Priority should be given to infrastructure that facilitates AI accessibility for all, such as education on AI tools, internet access, and computing capacity.
An illustrative model is the effort led by the Student Freedom Initiative (SFI). Addressing the ongoing digital broadband gap should be our starting point. SFI has been actively working to narrow this divide in Black neighborhoods, notably across historically Black colleges and universities (HBCUs), where 82% are situated in areas lacking broadband access. Closing this critical gap is essential to equip the next generation of diverse leaders with the necessary resources, education, and technical tools to navigate evolving technologies.
Moreover, we need to enhance our educational programs regarding these technologies. Cultivating both critical thinking and technical proficiency is becoming essential for effective interaction with GenAI. Educational institutions, especially those at the secondary and post-secondary levels, have a crucial role in preparing students with these vital competences.
Last year, in collaboration with Stats Perform, a premier provider of AI solutions in the sports sector and a part of my investment firm, Vista Equity Partners, SFI introduced the “AI in Basketball” course at Morehouse College. This initiative offered practical training on AI applications and was designed to prepare students to emerge as leaders in this domain. Additionally, we created internship opportunities to allow students to apply their knowledge in practical environments, thereby improving their experience and enhancing their resumes for careers in AI. We are planning to broaden this initiative to more HBCUs, opening pathways into this burgeoning field.
Another significant initiative is internXL, which provides free training, certification, and numerous opportunities in artificial intelligence, data science, and machine learning, including access to over 500 AI training courses. The internXL program also links talented HBCU students to internships with AI professionals and companies, allowing them to gain direct experience in the industry. Internships play a vital role, as research indicates that having experience with the hiring organization or in the same industry considerably improves a candidate’s prospects. This effort will help close access gaps and promote the success of underrepresented talent in the rapidly evolving and high-demand AI sector.
Finally, guaranteed access to computing power is necessary to utilize these fresh tools and their applications. Companies in telecommunications have upgraded their infrastructure to support 4G, 5G, and LTE services, but many Black communities lack full investment in these networks. To truly harness the potential economic benefits of AI, all neighborhoods must have the foundational infrastructure supporting these technologies, including access to computational resources, sufficient energy supplies, large language models, and other machine learning tools.
The economic toll
It is well understood that the racial wealth divide could cost the U.S. economy between $1 trillion and $1.5 trillion over the period from 2019 to 2028. Consider the significant positive impact we might achieve by taking action to prevent AI from becoming a new economic barrier, instead transforming it into a source of intergenerational wealth. How beneficial would reliable access to these tools be for global communities? Provided that the necessary measures are taken to prevent these tools from perpetuating racial biases, fostering innovation and economic progress could significantly diminish multiple disparities and generate prosperity for all.
Currently, AI is anticipated to undergo three distinct phases of value capture. The initial phase has already begun, benefitting hardware manufacturers. The subsequent phase will reward tech giants like Microsoft, Google, and Oracle, among other major firms capable of delivering extensive computing services. The third wave will benefit software vendors that provide AI and GenAI solutions alongside their existing software offerings. Targeting these three areas could effectively impact the sustained growth of AI and GenAI.
The silver lining is that unlike the previous digital revolution, we now possess insights to guide our actions. As AI develops and both established firms and newcomers enhance their offerings, capabilities, and value capture, we must focus on ensuring that the remarkable advantages of AI reach everyone. Without such efforts, we will struggle to fully harness this potential. At this crucial juncture, we must think expansively and act decisively to build the infrastructure necessary to actualize the opportunities presented by AI and GenAI.
Robert F. Smith is the founder, chairman, and CEO of Vista Equity Partners, as well as the chairman of the Student Freedom Initiative (SFI) and Carnegie Hall. He is the founding director and chairman of the Fund II Foundation and co-chair of the Southern Communities Initiative (SCI). In a noteworthy act in 2019, Mr. Smith cleared the student loans of around 400 Morehouse College graduates and was recognized as one of TIME’s 100 Most Influential People in 2020.
