“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” -Alvin Toffler

Wednesday, October 8, 2025

Get Engaged. Understand AI. AI and the socialist and capitalist module. The Father of Capitalism

Shall a capitalist or social module with AI propel human development to the 22nd Century to benefit all members of the community, the WHOLE COMMUNITY?

Understanding modules and systems are a key to understanding the current uses and effects of AI. 

Understand the socialist and capitalist module uses of AI. 

The capitalist module has shaped U.S. economy globally since it’s beginning with the father of capitalism Adam Smith from his 1776 writing in the 18th Century to 2025 21st Century.  This module has spread globally, shaping nations economies based on our U.S. national interests. 

Will the ‘Haves’ leave the ‘Have Nots’ behind?

BEMA INTERNATIONAL
 
 
The Father of Capitalism

AI Overview

Adam Smith - The Decision Lab

Adam Smith is widely regarded as the "father of capitalism" and the founding father of modern economics due to his influential 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations. In this work, he argued that self-interest in free markets, guided by an "invisible hand," leads to increased national wealth and benefits society as a whole, contrasting with the earlier mercantilist economic system. 

 
 

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AI Overview

It is inaccurate to say AI is solely based on a capitalist model, but capitalist interests heavily influence its development. While the technology itself is neutral, the current economic system shapes its applications, concentration of power, and societal impact. 

How capitalism influences AI

  • Monopolization of infrastructure: The AI industrial landscape is dominated by a few major tech companies (like Google, Amazon, Microsoft, and NVIDIA) that have the vast capital required for computing power, data, and talent acquisition. This "winner-take-all" model creates a high barrier to entry for smaller players, centralizing control over AI's future.
  • Commodification of data: A central characteristic of "AI capitalism" is the transformation of personal user data, behavior, and social interactions into a valuable commodity. This data is extracted and monetized to train and improve AI models, creating a constant feedback loop that serves corporate interests rather than the public good.
  • Focus on profit maximization: For capitalist enterprises, AI is a tool to increase efficiency, boost productivity, and reduce costs. This often leads to applications that displace human workers, automate creative labor, and intensify control and surveillance in the workplace to maximize profits.
  • Embedded societal biases: AI models are trained on data from a society with existing biases, including gender, racial, and economic inequalities. Because companies have an incentive to maximize efficiency and profit over social justice, AI risks mirroring and even amplifying these biases rather than dismantling them.
  • Acceleration of inequality: The benefits of AI adoption are not equally distributed. Large corporations leverage AI to consolidate market dominance, while displaced workers may face unemployment or reduced wages. The gains disproportionately benefit the owners of capital rather than the workers whose labor is automated. 

Arguments against AI being solely capitalist

  • AI is a neutral technology: From this perspective, AI is simply a tool or a force multiplier. Its ultimate impact depends on the economic and social system in which it is developed. In a capitalist system, it can be used for exploitation, but in an alternative system, it could be used for liberation.
  • Alternatives exist: There are other models for AI development, such as open-source initiatives and "AI commons," where data and infrastructure are owned and governed collectively. This would prioritize social utility and equitable distribution of value over private profit. Initiatives like this are intended to serve human needs and free people from repetitive labor.
  • Non-capitalist influences: Government funding has also played a role in AI development, with some of the core technologies behind modern consumer products originally backed by public investment. AI is also being developed for applications in fields like climate change research and public health, though critics argue that these initiatives still operate within the larger capitalist framework
  • In conclusion, while AI is not intrinsically capitalist, the current reality of its development is profoundly shaped by capitalist drivers like competition, data extraction, and profit maximization. This results in the centralization of power in the hands of a few tech giants, a phenomenon some critics term "digital feudalism".

 

Socialist Module and AI

AI Overview

There is no single "socialist model of AI," but rather a set of proposals and principles informed by socialist ideology that contrast with the for-profit model of AI development. 

A socialist-aligned approach emphasizes collective ownership, democratic control, and the redistribution of wealth generated by AI and automation. 

Core principles

  • AI as a communal resource: AI models and technologies are viewed as a collective creation built on humanity's shared knowledge. Therefore, they should be owned and governed by the public rather than privately controlled by corporations.
  • Harnessing AI for social good: Rather than prioritizing corporate profit, AI would be used to address societal challenges and benefit everyone. Potential applications include improving universal healthcare, enhancing education, and optimizing for environmental sustainability.
  • Addressing automation and labor: Socialists argue that under capitalism, AI-driven automation leads to job displacement and increased inequality, as the productivity gains benefit owners rather than workers. In a socialist model, automation could be used to reduce the workweek, relieve people of tedious tasks, and create more fulfilling jobs.
  • Empowering workers: Workers would have a direct say in how AI is implemented in the workplace. This could be facilitated through worker cooperatives or democratic oversight, ensuring that technology serves the collective good rather than increasing managerial control and worker surveillance.
  • Ethical AI governance: A socialist approach would prioritize ethical AI governance to protect individual privacy, prevent algorithmic bias, and ensure accountability. This is seen as a contrast to a profit-driven system that may overlook such ethical considerations. 

Key applications

  • Economic planning: AI could solve the "economic calculation problem," a traditional criticism of central planning. By analyzing vast datasets on production and consumption, AI could help optimize resource allocation to meet human needs and ensure economic stability.
  • Social safety nets: AI could be used to create more effective and personalized social safety nets by identifying vulnerable populations and allocating social assistance programs efficiently.
  • Participatory decision-making: AI-powered platforms could facilitate citizen engagement in policy and resource allocation decisions, fostering transparency and democratic participation. 

Major critiques and challenges

  • Potential for authoritarianism: A key concern is that centralizing control over AI could lead to a concentration of power and increased state surveillance, undermining individual freedoms and privacy. China's mandate that generative AI must reflect "core socialist values" is often cited as an example of AI being used for state control.
  • Reduced innovation: Critics argue that removing the profit motive and competition could reduce the incentive for rapid innovation in AI, potentially slowing down technological progress.
  • Bureaucracy and inefficiency: Centralized governmental control over AI development could lead to slower decision-making, increased bureaucracy, and misallocation of resources compared to a competitive market.
  • Data reliability: Despite advances in AI, the problem of incomplete or unreliable data, which affected earlier attempts at planned economies, would remain a challenge for a socialist AI model.

 

 


 

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