INDUSTRY
Paris meet takes the first steps to build a consensus on development of AI
- IBJ Bureau
- Feb 27, 2025
The summit on artificial intelligence (AI) in Paris in early February brought together representatives from more than 100 countries. The two-day meeting, co-chaired by French President Emmanuel Macron and Prime Minister Narendra Modi, discussed at length how to reach a consensus on guiding the development of AI.
The summit was held amid a three-way race for AI dominance. Europe is seeking to regulate and invest in AI. On the other hand, China is focused on expanding access through its State-backed tech giants. The US – always a strong votary of the private sector – is pushing for a hands-off approach in terms of regulation.
Some leaders at the summit emphasised the need for creation of a diverse and inclusive AI ecosystem that is human rights-based, ethical, safe and trustworthy. Others voiced concerns that overregulation of the industry could stifle innovation and development of the technology.
The Paris summit finally came up with a forward-looking declaration, seeking to promote accessibility to AI and reduce digital divides. It called for ensuring that AI is open, inclusive, transparent, ethical, safe, secure and trustworthy. The declaration also voiced its support to encourage innovation but avoid market concentration. There was also the emphasis of ensuring that the AI positively shaped the future of work and labour markets and was sustainable for the people and the planet.
The intense race for the AI was evident at the summit, with two major participants – the US and the UK – refusing to sign the summit declaration. The US did not sign the declaration on the grounds that excessive regulation could stifle innovation and challenge its domination of the sector. The UK stayed away because it reasoned that the declaration did not go far enough in addressing global governance of the technology. Finding common ground between competing visions and working towards a global approach to AI remain a challenge. Yet the bright side was that over 50 countries, including Canada, China, France and India, signed the declaration.
Mr Modi addressed the summit by speaking about absolutely-amazing positive potential of the AI in health, education, agriculture and other sectors. However, he underlined the need to be alert to its potential for biases. The prime minister also outlined a vision for the future where open-source systems could enhance trust and transparency and where technology was democratised and rooted in local ecosystems.
India’s approach to AI will be crucial as the technology progresses and costs decline. Innovations such as Chinese firm DeepSeek’s breakthrough reasoning models underscore the growing risks to labour markets. AI-driven efficiency gains present an attractive business proposition. Yet the potential for job losses or stagnant wage growth in the IT sector – and going forward, in many more sectors where the AI will be deployed in a big way – poses serious risks.
India and its policymakers must ensure that its foundational AI models are tailored to Indian needs. Leveraging emerging efficiencies and maximising AI’s potential must remain central to India’s strategy. Building a domestic large language model (LLM) and procuring high-end graphics processing unit (GPUs) would be important steps in that direction. The Rs 10,370-crore IndiaAI Mission’s initiatives – such as subsidised access to GPU clusters and funding for promising projects – are encouraging steps towards this goal. Looking ahead, integrating AI into education and skill training at scale will also be essential.
The AI will undoubtedly reshape industries and the whole world in the years to come. A robust talent pipeline has to be ready to ride the AI wave successfully. India can replicate its success in the Unified Payments Interface (UPI) ecosystem into its AI framework to reap the big gains of this new technology.
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