(Commonwealth)_ While much of today’s attention is fixed on the development of AI infrastructure, the real value of artificial intelligence lies in the transformative applications that will emerge on top of it. The current race among global tech companies to build powerful AI infrastructure mirrors historical innovations like electricity and the internet. These foundational technologies, while revolutionary, ultimately became commodified and widely used but offered slim margins. AI is heading in the same direction.
Already, we are seeing this commoditization take shape. Initiatives like DeepSeek, an open-source large language model (LLM), have demonstrated that high-quality AI tools can be developed at a fraction of the cost incurred by major corporations. This marks the beginning of a shift where the intelligence layer, the LLMs that power applications, will operate similarly to utilities. Future AI-based applications will incur costs to access the underlying intelligence provided by LLMs, just as consumers pay monthly bills for electricity or internet access. However, these costs will resemble utility fees: low-margin, scalable, and undifferentiated.
Unlocking True Value through AI applications.
The creative and purposeful applications that sit atop infrastructure will realize the future’s true promise. These applications will leverage AI’s power to address global challenges and reshape industries. With this evolution, a new job market will emerge in the “Augmented AI Solutions” layer. While there will inevitably be displacement in traditional roles, new opportunities will arise as AI creates solutions for the greater good. In healthcare, AI can revolutionize diagnostics and treatment. It has the potential to speed up drug discovery, detect diseases such as cancer in early stages, and even slow the aging process. In education, AI can personalize learning experiences, adapting content and pace to the unique needs of each student, and finally moving beyond the outdated one-size-fits-all classroom model.
AI’s role in climate and energy is equally transformative. It can optimize energy grids, improve renewable energy efficiency, and enhance carbon-capture methods. By refining climate modeling, AI can also play a pivotal role in predicting and mitigating the impact of natural disasters. In agriculture, AI-driven precision farming can increase crop yields, reduce waste, and improve food security globally.
Strategic AI Planning Is Key
To unlock these possibilities, national and sectoral AI strategies are essential. A national AI strategy must offer a clear, forward-looking vision. This includes developing human capital, maintaining ethical standards, and ensuring data sovereignty. Countries that fail to transition their workforces strategically to embrace AI risk falling behind in a rapidly evolving global economy. Sector-specific strategies are equally critical. These tailored frameworks can identify specific use cases in healthcare, energy, education, and agriculture, enabling focused innovation and investment in high-impact areas.
Key Policy Questions for the AI Future
As countries shape their approach to AI, policymakers must grapple with several foundational questions:
How can digital infrastructures be designed to generate and retain local value while remaining globally competitive?
What does inclusive growth look like in an AI-driven economy?
How should education and workforce development evolve to prepare citizens for future jobs?
What ethical and regulatory frameworks are needed to balance innovation with social responsibility?
How can governments ensure that new employment models remain fair and sustainable in a changing economy?
A Call to Action for Policymakers
These questions are not merely theoretical; they are time-sensitive. The pace of AI development means that the future is already arriving. Policymakers must act now to develop frameworks that are inclusive, ethical, and forward-thinking. The world stands at a pivotal point where AI can either deepen divides or bridge them and disrupt industries or empower them. The choices made today will shape the societies of tomorrow. The infrastructure is being built, but it is the thoughtful and creative application of AI that will truly define its value. Now is the time to act.
