Policy & Ethicsllmapplication layerlocalizationsovereignty
Susan Athey Warns Developing Economies About AI Dependence
7.0
Susan Athey, Stanford professor of economics of technology, told ET on Dec. 22, 2025, that AI offers India opportunities to customize language, local services and application-layer products, especially for government-led demand. She warned developing economies risk becoming net importers of AI without local control, stressing that mission-critical systems require domestic implementation and noting difficulties measuring AI's economic impacts.
Key Points
- 1Highlights India's customization opportunity for language, local services, and application-layer AI implementation.
- 2Warns that dependence on foreign AI providers risks loss of sovereignty and bargaining leverage for governments.
- 3Advises promoting domestic application-layer developers to ensure mission-critical integration with payment systems.
Scoring Rationale
Credible expert interview offers strategic sovereignty and localization insights, limited novelty and primarily national focus.
Sources
Public references used for this report.
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