Inclusive AI Growth Hinges on Public Systems and Open Innovation

At the India AI Impact Summit 2026, a panel titled “AI and the New Frontier for Economic Progress: Linking Innovation to Inclusive Growth” explored whether artificial intelligence will exacerbate divides or fuel broad prosperity. Featuring economists and policy experts, the discussion spotlighted productivity, public transformation, open ecosystems, and labor readiness as keys to harnessing AI in emerging economies.
World Bank South Asia Vice President Johannes Zutt highlighted AI’s leapfrogging potential:
practical, affordable “small AI” for limited-connectivity areas to boost growth and solve local problems, rather than frontier tech alone.
University of Chicago’s Ufuk Akcigit warned of innovation imbalances, low barriers at the
application layer spur startups, but high entry costs for foundational models risk power
concentration, stifling creative destruction essential for sustained growth.
Michael Kremer of Chicago’s Development Innovation Lab urged public funding for
high-impact applications overlooked by markets, like public goods needing government and
multilateral support to narrow development gaps.
J-PAL’s Iqbal Singh Dhaliwal focused on frontline gains: AI freeing teachers’ and health
workers’ time counts as true wins, but diffusion must match labor absorption to curb
inequality. Columbia’s Anu Bradford advocated shared AI sovereignty via cooperative rules
balancing Global South needs with competitiveness.
Panellists agreed: AI’s power lies in elevating teachers, health workers, and small
enterprises while strengthening public systems. Success demands public investments, open
knowledge, entrepreneurship, and equitable regulations.