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AI Policy Choices Will Shape Global Power and Growth: Wadhwani Warns

Technology entrepreneur Romesh Wadhwani warns that national policy decisions on AI made in the coming few years will critically determine future economic growth, geopolitical power, and social stability. He highlights the rapid shift towards autonomous AI agents, projecting explosive growth that will transform business processes and labor markets within a five-year horizon. Wadhwani contrasts the regulatory approaches of the US, EU, and China, while describing India's strategy as practical innovation focused on deployment and economic growth. He projects AI could add up to $1.5 trillion to India's GDP and emphasizes the upcoming AI Impact Summit's focus on implementation, especially for the Global South.

Key Points: AI Policy to Determine Economic Winners, Says Romesh Wadhwani

  • AI agents to grow over 200% annually
  • Policy shapes geopolitics and economy
  • US, EU, China, India have divergent approaches
  • AI could add $1.5T to India's GDP
  • Summit shifts focus to implementation
2 min read

AI policy choices in coming years will shape economic growth, global power: Romesh Wadhwani

Tech entrepreneur Romesh Wadhwani says national AI policy choices in the next few years will dictate economic growth, geopolitical power, and social stability globally.

"AI policy will determine winners and losers. - Romesh Wadhwani"

Washington, Jan 31

Artificial intelligence is advancing so rapidly that national policy choices made in the next few years will determine economic growth, geopolitical power, and social stability, technology entrepreneur Romesh Wadhwani said.

Delivering the keynote address at a major CSIS conference ahead of India's upcoming AI Impact Summit, Wadhwani said AI is entering a new phase defined by autonomous "AI agents" capable of planning, executing, and learning with limited human oversight.

"What was breakthrough technology three years ago now seems quaint," Wadhwani said, referring to early generative AI tools. He said the world is shifting toward AI agents that can augment, replace, and eventually surpass human workers.

Wadhwani said fewer than 5 million AI agents existed in 2025 but projected a compound annual growth of more than 200 percent over the next 5 years. He said AI agents will soon collaborate autonomously, replace humans in many tasks, and eventually operate entire business processes.

"This is not a 50-year vision," he said. "This is a five-year vision."

He said the speed of AI development far exceeds the pace of government regulation, drawing parallels to how decades passed between the invention of the telephone and the creation of a coherent US telecommunications policy.

Wadhwani said AI policy will shape outcomes across five dimensions: geopolitics and national security, economic growth, business competitiveness, innovation speed, and social stability.

"AI policy will determine winners and losers," he said.

Comparing global approaches, Wadhwani described the United States as favoring light-touch regulation and innovation leadership, Europe as prioritizing regulation through its AI Act, and China as pursuing mandatory AI adoption under political control.

He described India's approach as focused on economic growth and large-scale deployment.

"I think of India as the land of practical innovation using AI," Wadhwani said.

He said India is emphasizing applications rather than capital-intensive frontier models, combined with massive reskilling efforts and relatively limited regulation. He said India aims to become one of the top three AI powers globally, after the US and China.

Wadhwani projected that AI could add between $1 trillion and $1.5 trillion to India's GDP over five years, while creating tens of millions of new jobs, even as automation displaces others.

Wadhwani said the upcoming AI Impact Summit in India reflects a shift in global AI discussions toward implementation and development outcomes, particularly for the Global South.

- IANS

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Reader Comments

P
Priya S
"Land of practical innovation" - I love that phrase for India's approach! While the US and China race for the most powerful models, we are solving real problems for our billion-plus population. The AI Impact Summit focusing on the Global South is a step in the right direction. Hope it leads to actionable policies.
R
Rohit P
The job displacement part worries me. "Tens of millions of new jobs" sounds good, but will they be for the people who lose their current jobs to AI agents? We need a concrete, district-level reskilling roadmap, not just big national numbers. The policy must protect the vulnerable during this transition.
S
Sarah B
As someone working in tech, the pace is terrifying. What was cutting-edge last year is obsolete today. Wadhwani's point about regulation lagging is spot on. India's light-touch approach could help us move fast, but we must also build strong ethical guardrails to prevent misuse. It's a delicate balance.
V
Vikram M
Aiming for top 3 is ambitious but necessary for our strategic autonomy. We cannot be dependent on foreign AI platforms. Our policy must aggressively support homegrown AI research and startups, not just application deployment. Jai Hind!
K
Karthik V
With respect to Mr. Wadhwani, I feel the article underplays the social stability risk. Rapid AI adoption without strong digital literacy and access in rural areas could widen the inequality gap dramatically. Policy needs to be inclusive from day one, not an afterthought.

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