How to prevent AI from widening the racial wealth gap

The rise of artificial intelligence (AI) has been astonishing in its speed and impact. According to Goldman Sachs data, investment in artificial intelligence is expected to reach $100 billion in the United States and $200 billion globally by next year. Last year, in private equity alone, generative artificial intelligence (GenAI) investments reached $2.18 billion – double the number of the previous year.

However, while we often hear about the limitless promise of artificial intelligence – as we should – we also need to pay more attention to the careers, lives and communities it will disrupt, including those who have been excluded so far. For example, according to a recent study by McKinsey, Black Americans are 10% more likely to work in jobs dedicated to AI automation. Additionally, the same study predicts that AI will disrupt 4.5 million jobs for Black workers. This disruption has the potential to impact billions of dollars in potential and economic growth for Black people. If current trends continue, the new wealth created by GenAI alone will increase the racial wealth gap by $43 billion annually, according to McKinsey.

We have already seen how rapid adoption of technology can exacerbate gaps and create new divisions. One need only look at the creation and adoption of computers and the Internet. In 1987, economist Robert Solow famously claimed: “You can see the computer age everywhere except in productivity statistics.” Today, we almost take for granted the amount of productivity brought by the digital age. But this digital age has also created a digital divide, exacerbating racial economic gaps. One legacy of the failure to address this digital divide and ensure broadband access for Black communities and other communities without access to resources and opportunities has been limited engagement with these tools.

As we stand at the beginning of this coming AI revolution and its early waves of value creation, our urgent task is to prevent another gap. We can do this by empowering all people to participate and be leaders in this evolving field, allowing our economy to reap greater benefits. This starts with infrastructure that supports enabling AI for all, including education about AI tools, internet access and computing power.

One example of this is the work of the Student Freedom Initiative (SFI). As a first step, we must commit to eliminating the existing digital broadband divide. SFI works hard to bridge the digital divide in Black communities, including Historically Black Colleges and Universities (HBCUs), 82% of which reside in broadband deserts. This is a critical gap that must be closed to provide the next generation of diverse leaders with the resources, education, and technical access needed to master this cutting-edge technology.

We must also redouble our efforts to provide education about these tools. Combining critical thinking with technical skills is increasingly becoming a prerequisite for effective interaction with GenAI. Our education system, especially secondary and higher education institutions, must play a major role in equipping students with these basic skills.

In partnership with Stats Performance, a global leader in AI solutions for the sports industry and an affiliate of my global investment firm, Vista Equity Partners, SFI launched the “AI in Basketball” course at Morehouse College last year. This course provided hands-on instruction in AI use cases, which helped prepare these students to be leaders in the field. It also provided students with internship opportunities to use what they learned in a real-world setting, allowing them to build experience and a competitive resume for careers in AI. Soon, we will expand these courses to other black colleges, creating on-ramps for this growing industry.

Another notable example of this is the work being done at internXL, which provides opportunities such as free training and certifications in AI, data science and machine learning, including access to over 500 AI courses. The internXL initiative also connects highly qualified HBCU students with AI experts and employers for internships, enabling them to gain hands-on experience in the field. Internships are critical – studies show that internships at the hiring organization, or in the same field, are among the highest discriminating factors used in selecting among qualified candidates. This work works to close access gaps and ensure that underrepresented talent thrives in the fast-growing and in-demand field of AI.

Finally, we must also ensure widespread access to computing, or processing power, to run these new tools and their applications. If we use the example of smartphones, computing has been made possible by telecommunications organizations upgrading their infrastructure to handle 4G, 5G, and LTE networks — which have not been adequately invested in across Black communities. If we are to fully harness the potential impact of AI on our economy, all societies need access to these tools and the infrastructure that supports this technology. This includes the computing power and power supplies required, large language models, and other machine learning and inference tools.

We know that the racial wealth gap will cost the American economy between $1 trillion and $1.5 trillion between 2019 and 2028. Imagine what it would mean for the economy if we took steps to prevent AI from becoming a new economic wedge and, instead, a prolific source of generational wealth. What if we could ensure access to these tools for communities around the world? As long as we take appropriate steps to prevent these tools from mimicking and reinforcing racial biases, the innovation and economic growth they will stimulate has the potential to close many gaps and generate prosperity for all.

With the current trajectory of AI, there will be three distinct waves of opportunities through which value will be captured. We are already seeing the first wave of value creation that device vendors are benefiting from. The second wave will go to super climbers like Microsoft, Google, oracle And other large companies that have the ability to provide connectivity for large-scale computing. The third wave will benefit enterprise software vendors that offer AI and GenAI solution suites in addition to their existing products. These are three distinct sectors where we should focus our equity efforts to impact the long-term growth of AI and GenAI.

The good news is that, unlike the digital revolution, we have the luxury of foresight. As AI evolves, new companies and products are created, features are developed and value is captured at every stage, we must commit to ensuring that everyone has access to the amazing benefits of AI. If we fall short, we will not be equipped or able to fully harness and unleash its potential. As we stand at this crossroads, we must think big and act decisively to ensure we build the infrastructure to support AI and enable GenAI.

Robert F. Smith is the founder, chairman and CEO of Vista Equity Partners. He serves as President of the Student Freedom Initiative (SFI) and Carnegie Hall, Founding Director and President of the Second Fund Foundation, and Co-Leader of the Southern Communities Initiative (SCI). In 2019, Smith canceled student debt for nearly 400 Morehouse College graduates and was named one of Time magazine's Most Influential People of 2020.