rtificial intelligence (AI) is reshaping economies, security, and governance at a pace governments struggle to keep up with. At this point, the question is not whether society will be transformed by AI, but how it will be transformed—and whether democracy remains intact as governance institutions fall behind.
The global market landscape is undergoing a seismic shift, with technology firms and state–backed initiatives investing heavily in AI research and infrastructure. A 2025 World Economic Forum report estimates that automation could displace 92 million jobs by 2030 while creating 170 million new roles, primarily in healthcare, education, and technology. However, job losses in administrative and manufacturing sectors may exacerbate economic inequality, necessitating policies that prioritize workforce adaptation.
Within organizations, AI is changing how teams function, making some roles redundant while demanding new skill sets. Companies must balance automation with human capital investment, ensuring employees are reskilled rather than displaced. A McKinsey report suggests that by 2030, nearly half of all workers will require retraining in digital skills, yet corporate re–skilling efforts remain underfunded and inconsistent. The challenge lies in integrating AI without undermining workforce stability.
Geopolitical power structures are also being redrawn, particularly in cybersecurity, defense, and intelligence. Nations that achieve AI supremacy gain significant leverage in military and intelligence operations, while others risk dependence on foreign technologies. The decisions made today regarding regulation, investment, and international cooperation will shape whether AI contributes to global stability or deepens strategic divides.
Algorithmic decision making is increasingly embedded in hiring, financial approvals, and public services, yet concerns persist over bias and fairness. A University of Cambridge study found that AI recruitment tools often reinforce biases rather than eliminate them. Without clear governance, AI could erode trust in public institutions by making decision making less transparent and more difficult to challenge.
Deepfakes and AI–driven disinformation threaten elections, polarize societies, and weaken public trust in institutions. AI–generated content can manipulate public opinion at scale, making it harder for voters to distinguish fact from fiction. Governments and technology firms must act decisively to balance AI–driven innovation with protections against mass disinformation.
AI’s rapid expansion also raises sustainability concerns. According to a recent Goldman Sachs report, global data center power demand is projected to increase by up to 165% by 2030, primarily driven by the expansion of artificial intelligence applications. AI hardware production depends on lithium and rare earth elements, heightening geopolitical tensions and environmental risks. Managing these challenges requires forward-thinking policies on energy efficiency and sustainable resource use.
The future of democratic institutions depends on the governance decisions made today. The U.S. prioritizes market–driven expansion, the EU emphasizes regulatory safeguards, and China integrates AI into centralized state control. These approaches will shape whether AI governance reinforces democratic values or concentrates power in ways that weaken public accountability.
The real risk is not that AI will become too powerful, but that institutions will remain too weak to shape it. Technology does not erode democracy. Failure to govern it does.
a global affairs media network
Power, peril, and AI’s governance challenge to democracy
Image via Adobe Stock.
March 31, 2025
The relevant question with AI isn’t whether society will be fundamentally reshaped, but how—and whether democracy remains intact as governance institutions fall behind, writes Aida Ridanovic.
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rtificial intelligence (AI) is reshaping economies, security, and governance at a pace governments struggle to keep up with. At this point, the question is not whether society will be transformed by AI, but how it will be transformed—and whether democracy remains intact as governance institutions fall behind.
The global market landscape is undergoing a seismic shift, with technology firms and state–backed initiatives investing heavily in AI research and infrastructure. A 2025 World Economic Forum report estimates that automation could displace 92 million jobs by 2030 while creating 170 million new roles, primarily in healthcare, education, and technology. However, job losses in administrative and manufacturing sectors may exacerbate economic inequality, necessitating policies that prioritize workforce adaptation.
Within organizations, AI is changing how teams function, making some roles redundant while demanding new skill sets. Companies must balance automation with human capital investment, ensuring employees are reskilled rather than displaced. A McKinsey report suggests that by 2030, nearly half of all workers will require retraining in digital skills, yet corporate re–skilling efforts remain underfunded and inconsistent. The challenge lies in integrating AI without undermining workforce stability.
Geopolitical power structures are also being redrawn, particularly in cybersecurity, defense, and intelligence. Nations that achieve AI supremacy gain significant leverage in military and intelligence operations, while others risk dependence on foreign technologies. The decisions made today regarding regulation, investment, and international cooperation will shape whether AI contributes to global stability or deepens strategic divides.
Algorithmic decision making is increasingly embedded in hiring, financial approvals, and public services, yet concerns persist over bias and fairness. A University of Cambridge study found that AI recruitment tools often reinforce biases rather than eliminate them. Without clear governance, AI could erode trust in public institutions by making decision making less transparent and more difficult to challenge.
Deepfakes and AI–driven disinformation threaten elections, polarize societies, and weaken public trust in institutions. AI–generated content can manipulate public opinion at scale, making it harder for voters to distinguish fact from fiction. Governments and technology firms must act decisively to balance AI–driven innovation with protections against mass disinformation.
AI’s rapid expansion also raises sustainability concerns. According to a recent Goldman Sachs report, global data center power demand is projected to increase by up to 165% by 2030, primarily driven by the expansion of artificial intelligence applications. AI hardware production depends on lithium and rare earth elements, heightening geopolitical tensions and environmental risks. Managing these challenges requires forward-thinking policies on energy efficiency and sustainable resource use.
The future of democratic institutions depends on the governance decisions made today. The U.S. prioritizes market–driven expansion, the EU emphasizes regulatory safeguards, and China integrates AI into centralized state control. These approaches will shape whether AI governance reinforces democratic values or concentrates power in ways that weaken public accountability.
The real risk is not that AI will become too powerful, but that institutions will remain too weak to shape it. Technology does not erode democracy. Failure to govern it does.
