Finally, Alphabet Google’s parent company head Sundar Pichai has called for regulation of the development of Artificial Intelligence (AI). Weird, for a head to seek regulation in technology which could actually limit their innovation, but Google is run by saner heads and they are fully aware that even if AI technology has enormous potential, it is fraught with considerable dangers. Most responsible technology companies know that they are on the threshold of building cutting edge AI which could eventually turn out to be a threat to humans, if not properly regulated, and are therefore seeking a proper debate before regulators prepare the ground rules of what is permissible and what is off limits.
But AI is not the only issue that is keeping the regulators busy. Companies like Google, Amazon or Facebook have also grown huge in might and size and their clout is taking a toll on the way businesses are supposed to function in a free market world. These deep pocket companies, in their quest for aggressive inorganic growth, have been buying out companies, mostly using fair tactics, but sometimes not shying away to use aggressive methods if the situation demands. Regulators are now waking up to the new reality of how to control the size and clout of these companies. While the European Commission is way ahead than their USA counterparts, everybody is in agreement that something has to be done about the size of these companies even if they have the best of intentions.
For those who have followed my writings in this publication for the past 15 years might be wondering why the sudden change in heart to one of my favourite company Google. Exactly my point, even if Google happens to be your most admired company, does not mean we applaud it all the way to such humongous growth that it has the power to control and decide which business survives and which falls by the wayside. The bigger the size the stronger the control Google will have over its users, contributors and advertisers. So far Google has been run by very smart and sensible people, but there is no guarantee the company control will always remain with them. What happens if Google is taken over by irrational people, it opens up different possibilities since Google also possesses personal data of its users.
The same logic applies to Facebook who owns Instagram and WhatsApp. A technology company, with so much data even if it happens to be harmless casual social media conversations, is not an ideal situation and opens up different scenarios as far as control over its users is concerned. While on the same subject, Amazon has also grown into a giant that it can effectively decide who should survive and who gets thrown by the wayside, if they do not agree to sell their products through their platform. With deep pockets they can effectively slaughter any business as per their whim. No wonder the Indian government gave a cold response to Jeff Bezos recent visit to India, but instead of embarrassing your guest in this fashion, the government should apply their mind, encourage debate and work on regulations on how to handle this new and developing scenario. Unfortunately in India regulation implies harassment and so before we go full throttle on regulations, it is prudent to check out how the advanced and democratically vocal countries of Europe and United States handle this ongoing situation.
Technology companies are not the only ones giving a hard time to retailers, in the USA big guns such as Costco or Sam’s Club are storming away with billions of sales throwing of small fries that come their way. The underlining point being that big is beautiful for some, but is turning ugly for the small and many. This article does not have the answer on how to remedy this situation, but it needs a worldwide debate, especially in India it is time we start an open conversation.
In India the bosses of Airtel, the second surviving player in the telecom industry have already realized this ongoing scenario is not in the best interest of the industry. They are already empathizing at the prospect of yet another competitor getting slaughtered for whatever reason. If Idea-Voda the third private telecom player also bites the dust then we will have only two private players and one government player to cater to such a huge mobile user population. Imagine the power they will possess not only in terms of pricing, but the data they will have on their customers.
Competition should always be encouraged and world regulators must make sure there is always a level playing field. This new menace of deep pocket disruption is turning the world of business upside down in an absolutely unfair manner because small businesses not equipped to weather the storm of price undercutting have no other way but to fold up. For regulators also this is a brand new scenario made possible with the liberal use of technology. Technologies are enabling the loaded to scale up their businesses in double quick time rendering traditional businesses obsolete by the minute.
Competition should always be welcomed but not when it is unfair and absolutely not when in the end it results into companies of such big size that they can potentially have absolute control over billion plus humans. Talking of control over humans, even politicians should by no means be allowed to have complete control over their citizens that almost borders on to slavery. For years Goans never understood the true meaning of democracy, and have created politicians that have become too big for democracy. Google founders know the dangers associated with a big company such as theirs and the risks that come along with it. Won’t be surprised they voluntarily split their parent company Alphabet just to stay in shape and at the same time avoid being evil. Sundar Pichai is asking for regulation in AI which left unregulated has the potential to become so big that it takes complete control over humans.
(Plastino D’Costa is a business consultant)
