Eswar Prasad

And I think the example of Europe is important here because Europe has taken a much more aggressive approach towards regulation of AI and they're falling significantly behind.

in terms of the competitive race, which has now become a China versus US competition by and large with some other players that are marginal.

I don't think it's good to stifle technology.

At the same time, we certainly need to have some guardrails

to ensure that this technology benefits us rather than causing more problems for society.

And I think we need to have some mechanisms in place to deal with the displacement that AI will cause.

There are certainly going to be some industries and some firms that are winners, some that are losers.

The question is, how do we ensure that we can support the more dynamic parts of the economy?

while ensuring that those who lose out during this transition don't fall through the cracks, because that is where the problem arises, where you have a large, disaffected population that feels that there are wonderful things happening around them that other people benefit from, and that they have no chance to get any of these economic opportunities.

So we may need to think about an economic structure, you know, not socialism or communism, but just

a robust safety net that allows people to get back on their feet.

And I fear that that safety net is fraying right now.

In terms of regulation, again, it's extraordinarily challenging.

When I think about these new innovations, we don't want to stand in their way.

But again, with something like AI that can potentially transform a variety of issues, you know, and intrude into our lives in many ways,

good and also in many ugly ways.

I think we need to at least have some regulation in place to make sure that it doesn't lead society to a very dark place.

Now you're taking me far beyond my ken, Professor Galloway.

Absolutely right.

The entitlements are hugely important.