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We must avoid dotcom-era policy mistakes when tackling AI, says Joseph Stiglitz

The Nobel Prize-winning economist had a front-row seat to 1990s competition policy in the US, which he argues led to the dominance of a handful of tech giants.

Jennifer Duke
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Joseph Stiglitz was concerned about competition in the era of the internet back in the 1990s — and he's concerned now. AAP Image/Virginia Mayo.

Professor Joseph Stiglitz is among the most qualified to contemplate what the dawn of artificial intelligence might mean for competition and regulation. But even the Nobel Prize-winning economist admits it is hard to reach any firm conclusions.

“We’re having a lot of discussions about what the competitive landscape will be with AI,” Stiglitz told Capital Brief in a phone interview on the sidelines of his speaking tour for The Australia Institute’s 30-year anniversary.

There are a raft of opinions on what AI might mean for competition, but they can generally be boiled down into two perspectives. On one side, there’s a view that a very small group of firms will dominate the AI industry.

“There are some aspects of it that lead to a very strong natural monopoly with one firm dominating,” Stiglitz said, describing this school of thought.