Artificial intelligence is one of the fastest-growing technologies we've seen in a long time. A few years ago, most people only heard about AI in movies or science fiction. Now it's everywhere. We ask ChatGPT questions, Spotify somehow knows what songs we might like, YouTube recommends videos before we even search for them, and our phones recognize our faces in seconds. It all happened so quickly that it almost feels normal now, which is kind of strange if you stop and think about it. Whenever AI comes up, people usually ask the same questions. Will it replace humans? Is it dangerous? Will robots take over? Those are interesting discussions, but I think another question gets ignored. How much does intelligence actually cost? We only see the final product but rarely think about everything happening behind the scenes. That's where the economics of AI becomes really interesting.
When AI was first introduced, it was assumed to be just another app. You type something, and it replies; end of story. Turns out it's much more complicated than that. Before an AI can answer even a simple question, it has to be trained using huge amounts of data. That training needs powerful computer chips, enormous data centres, engineers, researchers, cooling systems, and an unbelievable amount of electricity. Every answer that appears in a few seconds is backed by years of research and billions of dollars in investment. Initially, those numbers seemed exaggerated. Spending billions just to build software sounded ridiculous. But after reading more about it, it started making sense. Companies aren't only paying programmers to write code. They are buying expensive hardware, building facilities that run twenty-four hours a day, hiring some of the best researchers in the world, and constantly improving their models. It isn't cheap. Because of these costs, only a few companies are really leading the AI industry. Companies like OpenAI, Google, Microsoft, and Meta have enough resources to invest billions. Smaller companies might have brilliant ideas too, but competing against businesses with almost unlimited funding is incredibly difficult. In a way, intelligence itself has become something that requires huge financial investment before anyone even gets to use it. Of course, companies aren't spending this money simply because they love technology. They're investing because they expect a return. AI can reduce costs, improve productivity, and make businesses more efficient. Customer service chatbots can answer thousands of questions every day; hospitals use AI to help detect diseases, banks use it to identify suspicious transactions, and factories use it to improve production. Together, these improvements save businesses huge amounts of time and money.
Then there's the question everyone seems to ask. Will AI take our jobs? Honestly, some jobs will definitely change. Work that involves repetitive tasks is already becoming more automated. That's exciting from a business perspective because productivity increases, but it can also be worrying for workers. At the same time, history shows that new technology usually creates opportunities. The internet replaced certain jobs, but it also created careers that didn't exist before. AI will probably do the same. The real challenge is making sure people have enough time to learn the new skills future jobs will require. While a significant number of AI tools are advertised as "free," they often carry hidden costs or limitations. Someone is paying for those servers, researchers, electricity bills, and maintenance costs. Companies recover those expenses through subscriptions, premium plans, or business partnerships. So while users might not pay immediately, there's always an economic model working quietly in the background. Another issue is inequality. Wealthier countries can afford to invest heavily in AI research while developing countries often don't have the same resources. If this continues, AI could widen the economic gap between nations. But if it becomes cheaper and more accessible over time, it could also improve education, healthcare, and businesses in places that need it most.
AI should neither be blindly trusted nor completely feared. When used responsibly, it can be a useful tool for understanding difficult topics, finding information more quickly, and saving time. However, it is important to remember that AI is still only a tool, and its usefulness depends on how thoughtfully and responsibly it is used. It can make mistakes and misunderstand context, and it definitely can't replace human judgement, empathy, or real-life experience. In the end, the price of intelligence isn't only measured in billions of dollars. It's also measured in education, opportunities, jobs, and the decisions society makes as AI keeps developing. Artificial intelligence is already changing the economy in ways we likely don't even notice yet. The real challenge isn’t just building smarter machines anymore. It’s making sure the benefits don’t end up helping only a few companies or the richest countries. If that happens, AI won’t just be another technological breakthrough; it could become one of the biggest economic changes of our generation. The real measure of its success, however, will be whether it creates opportunities for everyone, rather than widening the gap between those who have access to it and those who do not.
Degree of Thought is a weekly community column initiated by Tetso College in partnership with The Morung Express. Degree of Thought will delve into the social, cultural, political, and educational issues around us. The views expressed here do not reflect the opinion of the institution. Tetso College is a NAAC-accredited, UGC-recognised Commerce and Arts College. The editorial team includes Tenipumei Phom, Asst. Professor Dept. of English, Limajungla Walling, Asst. Professor Dept. of Linguistics, and Munkiri Taro, Multimedia Executive. For feedback or comments, please email: dot@tetsocollege.org
