With the rapid rise of AI and machine learning, it’s no surprise that these technologies are capturing a growing share of global VC funding. According to data from PitchBook, in 2024 alone, AI and machine learning accounted for over 30% of global VC investments, with figures nearly reaching 50% in the US[1].

While some may view this concentration of funds as a temporary trend, there could be deeper, long-term consequences yet to unfold. Let’s go over the good, the bad, and the potentially ugly.

But first, let’s consider the positives. The biggest benefit of this trend is the continued innovation within AI and machine learning, which will undoubtedly bring widespread benefits to billions of people worldwide. As AI capabilities expand, the range of tasks it can perform will grow. The most common example would be generative AI and how it has expanded from simple text to image and video generation (and beyond).

Increased investment in AI could also lead to significant societal improvements. For example, tech startups such as Owkin and Insitro are leveraging AI and machine learning to advance research and drug discovery in the medical field. Success in these areas could dramatically improve the quality of life for individuals suffering from various health conditions. And AI’s potential isn’t limited to medicine, it’s also being applied across industries, from agriculture to entertainment, with each aiming to drive innovation and improvement in its own way.

Moreover, ongoing innovation will generate new job opportunities. The past few years have seen the growth in demand for Machine Learning Engineers, Data Scientists, and AI Prompt Engineers among others. As AI expands into new industries, the number and type of jobs being created also expands. For example, the Malaysia Internet of Things (IoT) Association deputy president Datuk P. Sri Ganes stated that up to 500,000 AI-based jobs could be created domestically by 2030[2]. This is especially encouraging for younger workers as they tend to have more flexibility to upskill or reskill and pursue careers in emerging industries.

While the continued advancement of AI holds great promise, there are also important concerns to consider. As AI systems become increasingly capable, there’s an underlying fear that the very technologies designed to enhance our lives could eventually displace us, thus rendering many roles and even certain skill sets obsolete.

The first and most immediate worry is job displacement. As AI continues to improve, it has the potential to automate a wide variety of tasks, from manual labor to more complex cognitive functions like decision-making and creative tasks. Already, industries such as customer service, transportation, and manufacturing are experiencing significant shifts as AI technologies take over positions that were once human-centric. As AI becomes more sophisticated, this trend could spread across virtually all sectors, leading to widespread job losses.

But it’s not just about the jobs we do today. AI’s rapid progression could outpace our ability to adapt. In the past, new technologies led to new industries and roles, but there’s a growing concern that the pace of change could leave a large segment of the population unable to reskill fast enough. As certain tasks become fully automated, the need for human involvement in those areas may diminish, leaving fewer opportunities for those who are unable to transition into AI-driven industries.

Beyond job losses, the shift toward AI-driven workforces raises deeper concerns about economic inequality and the future of employment itself. The companies that develop and control AI stand to gain enormous economic power, potentially concentrating wealth in the hands of a few, while millions face job precarity. The rise of gig work and short-term contracts, which is often a by-product of AI-driven platforms, may also contribute to greater instability by replacing traditional employment structures.

On top of that, there’s also the psychological toll to consider. The prospect of career instability, the erosion of traditional job security, and the constant need to upskill in an AI-dominated world could heighten stress and anxiety for workers across industries. If AI advancement continues without a clear plan for worker protection, the future of employment may not just be about automation, but about who gets left behind.

The rapid rise of AI has also raised questions about the ethics behind its use. In recent years, there has been an uproar about using AI for creative ventures. Writers, artists, and even background actors have seen their roles being replaced by AI. But who truly owns a creation when the “artist” is an algorithm? Can AI-generated works be considered original, or are they simply a remix of the copyrighted material they were trained on? These questions have sparked legal battles, with creative professionals and major media companies pushing for clearer intellectual property protections.

Beyond copyright, AI’s reliance on vast datasets introduces concerns about bias and discrimination. Many AI models learn from historical data that may reflect social inequalities, leading to biased hiring algorithms, discriminatory loan approvals, or even racial and gender disparities in law enforcement tools. One such instance of a biased AI occurred way back in 2015, when Google’s image recognition algorithm labelled some Black individuals as gorillas[6]. Without proper oversight, AI could reinforce rather than eliminate systemic biases, exacerbating existing inequalities under the guise of neutrality.

The extensive use of AI also raises questions surrounding security. With AI being deployed into seemingly every aspect of our lives, data privacy becomes a growing concern. AI systems rely on massive amounts of data to function effectively, often pulling from personal information, online activity, and proprietary content. This raises critical questions: Who controls this data? How securely is it stored? And to what extent are individuals aware of how their information is being used?

Cybersecurity is another serious concern. The same technologies that enable AI-powered innovation can also be weaponised in harmful ways. Deepfake videos, for example, have been used to slander individuals, manipulate public opinion, and spread misinformation on a massive scale. This is not taking into account the allegations of AI-generated disinformation campaigns that have been deployed to influence elections, destabilise governments, and incite social unrest.

Admittedly, arguing whether AI is an absolute good or bad advancement is difficult. Without deeper understanding, it is easy to see the negatives surrounding AI while overlooking the potential benefits it may bring.

Yes, there will be a shift in the way things are done. Yes, jobs will be displaced. This is not a new concept, as seen throughout history with the various industrial revolutions. Humans have, and will continue to adapt as needed to get by.

Funds will continue to flow into AI advancements, but it is not necessarily a bad thing. As long as the investments bring about net benefits, whether that may be in terms of sustainability, social well-being, or other metrics, there is good to be found within AI. Ethical oversight and regulatory frameworks will be crucial in ensuring that its benefits outweigh its risks. The challenge lies in finding the right balance that fosters innovation while safeguarding human rights, privacy, and security in an increasingly AI-driven world.

So, back to the question; Are we funding our obsolescence? Perhaps, but human history suggests that obsolescence is rarely absolute. The real question is not whether AI will replace us, but whether we will shape its development in a way that keeps people at the center of progress.