Artificial intelligence is no longer a futuristic experiment confined to research laboratories or technology giants. It has become the world’s fastest-growing general-purpose technology, reshaping economies, redefining labour markets and altering how governments deliver services and exercise power.

From diagnosing diseases and managing supply chains to drafting policy documents and driving vehicles, AI systems are rapidly integrating into everyday life. According to the United Nations Conference on Trade and Development, artificial intelligence now stands alongside electricity and the internet as one of the most transformative technologies in human history, with the potential to lift productivity, accelerate economic growth and reshape global trade

Boosting Business Productivity and Growth

For businesses, the appeal of AI lies in efficiency, speed and scale. AI systems can analyse vast amounts of data, automate repetitive processes and support decision-making in real time, allowing companies to reduce costs and improve productivity.

In the financial sector, AI is widely used in fraud detection, algorithmic trading, risk management and customer service automation. Manufacturing and logistics firms are deploying AI to optimise supply chains and reduce waste, while retailers rely on predictive analytics to better understand consumer behaviour.  

The World Trade Organization has noted that widespread adoption of AI could reduce trade costs and increase global trade volumes and real incomes, provided the technology spreads beyond a narrow group of advanced economies.

Governments Turn to AI

Governments around the world are increasingly turning to AI to modernise public administration and improve service delivery. AI-powered systems are being used to streamline tax collection, manage social welfare programmes, improve health services and support data-driven policymaking.

AI chatbots and digital assistants are also becoming common tools for citizen engagement, helping governments respond more quickly and efficiently to public inquiries. However, international organisations have cautioned that automation in the public sector could displace some jobs if retraining and workforce transition strategies are not implemented.

Impact in Daily Life

For individuals, AI’s influence is already visible across daily life. In healthcare, AI-assisted diagnostics and personalised treatment plans are improving patient outcomes. In agriculture, predictive analytics help farmers increase yields and reduce losses. In education, adaptive learning platforms are personalising instruction for students.

AI-driven accessibility tools, including speech recognition and computer vision, are also improving independence and inclusion for people with disabilities. Collectively, these technologies promise higher living standards, greater convenience and improved safety — if deployed responsibly.  

Jobs at Risk, Work Transformed

Despite its benefits, AI poses significant challenges for labour markets. The International Monetary Fund estimates that up to 60 per cent of jobs in advanced economies could be affected by AI, with many roles transformed rather than eliminated outright. In developing economies, where digital skills and retraining infrastructure are limited, the risks are more severe.

Academic research has linked rapid automation to technological unemployment where reskilling programmes are absent. Analysts warn that without deliberate investment in education and training, AI could displace millions of workers globally over the next decade.

A Widening Global Divide

AI also risks widening inequality between nations. Countries and firms with advanced computing infrastructure, skilled labour and access to capital are positioned to benefit most, while lower-income economies risk falling further behind.

Trade studies indicate that unless developing countries significantly narrow their digital infrastructure gap, income gains from AI adoption could lag far behind wealthier nations by 2040. This raises concerns that AI could reinforce global economic imbalances rather than reduce them.

China’s Strategic Push

China has emerged as a major force in AI development, making the technology a national strategic priority. The government has increased support for AI research, national laboratories and digital infrastructure, with a strong emphasis on technological self-reliance.

AI tools are already embedded in public administration across major Chinese cities, supporting data analysis and policy drafting. Beyond its borders, China is exporting AI technology and digital infrastructure, particularly to developing countries, enhancing productivity while expanding its global influence.

The United States and Europe: Two Models

Globally, the United States and the European Union have adopted contrasting approaches to AI governance.

The United States has pursued an innovation-first strategy, relying on executive orders, agency guidance and private-sector leadership rather than a single comprehensive AI law. Heavy investment in AI research, infrastructure and workforce development reflects Washington’s determination to maintain global technological leadership.

Europe, by contrast, has enacted the world’s first comprehensive AI law through the EU Artificial Intelligence Act. The legislation introduces a risk-based framework that bans certain high-risk uses of AI while imposing strict requirements on systems deployed in sensitive areas such as employment, healthcare and biometric identification. European policymakers argue that strong regulation is essential to protect citizens’ rights and build public trust.

When AI Falls Into the Wrong Hands

Alongside economic opportunity, security experts warn that AI misuse could pose serious global risks if it falls into the hands of malicious actors, extremist groups or irresponsible state actors.

Advanced data analysis, automation and simulation tools — used today in healthcare and logistics — could also be exploited to accelerate weapons research, enhance cyber warfare or support terrorist activities.

Weapons, Terrorism and Cyber Conflict

Security analysts have warned that AI could assist nuclear, chemical and biological research by rapidly analysing scientific data and modelling outcomes that would normally require years of specialised expertise. In the wrong hands, this could lower barriers to developing prohibited weapons and undermine decades of international non-proliferation efforts.

Extremist groups could also use AI for automated propaganda, deepfake videos, disinformation campaigns and recruitment. Deepfake technology has already raised global concern, with realistic synthetic audio and video capable of impersonating leaders, destabilising elections or provoking diplomatic crises.

At the state level, AI-powered cyber tools can identify vulnerabilities in financial systems, energy grids and communications networks, raising the risk of unintended escalation if automated responses trigger conflict before human intervention.

Governing a Powerful Technology

As AI capabilities expand, responsibility lies with both governments and technology developers.

AI developers are increasingly expected to implement strong safeguards, including restricted access to powerful systems, misuse prevention controls, transparency in system design and continuous monitoring.

Governments face mounting pressure to establish clear policies and laws to govern AI development and deployment. Key measures include national AI legislation, mandatory safety testing for high-risk systems, licensing requirements, criminal penalties for misuse, and international cooperation to prevent regulatory loopholes.

Many experts argue that AI governance must mirror existing international frameworks for nuclear, chemical and biological weapons — combining national regulation with global standards and shared norms.

The Stakes for Developing Countries

For developing countries such as Papua New Guinea, the stakes are particularly high.

Without strong laws and institutional capacity, smaller states could become targets for AI-enabled cybercrime, disinformation campaigns or unregulated technology imports. At the same time, poorly designed regulation could limit economic opportunity and innovation.

Balanced governance — protecting security while enabling responsible adoption — will be critical.

A Defining Technology of the Century

Artificial intelligence represents a fundamental shift in how societies function, how businesses compete and how governments govern. Its potential to drive growth and improve lives is immense, but so too are the risks — particularly for workers, vulnerable economies and nations slow to adapt.

The defining challenge for policymakers worldwide is ensuring that AI’s benefits are shared broadly while its dangers are contained. For countries that invest early in people, infrastructure and governance, AI could become a powerful tool for inclusive and sustainable development. For those that fail to adapt, the consequences may be long-lasting.