AI The Illusion of Progress, The Reality of Control

by bernt & torsten

The AI industry is being painted as the next big leap forward, but beneath the flashy marketing lies a different story that echoes past cycles of hype, overblown promises, and market manipulation. We’ve seen this playbook before massive corporations use marketing to create tribes of devoted followers, then flood the market with half-baked technology that may have profound implications on essential industries, including energy, water, and beyond. While they profit, we’re left bearing the brunt of the fallout, watching our jobs, services, and resources erode in the name of “progress.”

The Real Impact of AI on Essential Resources: Energy and Water

The push for AI isn’t just a drain on jobs or social values; it’s also a massive burden on energy and water resources. Training AI models is an exceptionally resource-intensive process, requiring immense computing power, which consumes huge amounts of electricity. Every time one of these models is trained, it leaves behind a colossal energy footprint, affecting the power grid and contributing to increased carbon emissions. Water is another hidden casualty. Data centers that house AI models require constant cooling, typically achieved by using enormous quantities of water. As AI continues to expand, so does its strain on our already-stressed water supply.

The same corporations pushing for AI dominance often tout their “sustainability” initiatives, but the irony is glaring. The AI industry’s current trajectory is unsustainable, creating a ripple effect in the energy and water markets. Electricity prices may rise as these data centers suck up more power, putting pressure on everyday consumers. Likewise, water scarcity, already a critical global issue, could be exacerbated by the AI industry’s unquenchable thirst for cooling its data centers. And when water becomes more valuable, investors will undoubtedly swoop in, further manipulating markets that should serve the public good.

Tech's Playbook from iPhones to Crypto

AI isn’t the first technology to leverage hype to build a loyal following. We’ve seen this tactic in the past with Apple’s iPhone and Mac products, blockchain technology, and cryptocurrency. Each of these technologies was marketed with a narrative of “revolutionary change,” capturing the public’s imagination. These tech behemoths use carefully crafted advertising campaigns, exclusive language, and constant reinforcement to foster a devoted tribe around their products. As more people buy into the hype, a sense of community and identity forms, binding users to the product and shutting out criticism.

AI follows the same formula. We’re inundated with narratives about how AI will make life easier, improve productivity, and replace “tedious” human jobs. In reality, these promises rarely come to fruition as envisioned. The hype is carefully managed, enticing us to join the AI revolution while the implications remain veiled. As users become part of the “AI tribe,” critical thinking takes a back seat, and the tech companies behind it all keep pushing boundaries unchecked.

The Financial Sector’s Investment in Power, Not Progress

For the financial sector and major corporations, AI isn’t about creating a better society or advancing technology for its own sake. It’s about control. By saturating the market with AI-driven solutions that make a quick buck, they sideline meaningful competition, making it harder for smaller, more innovative companies to survive. The near-monopolistic grip these companies now enjoy means they no longer need to compete on quality or merit; they can simply rely on their power and influence to push their products into every corner of our lives.

Despite its clear drawbacks and mounting criticisms, investment in AI persists because it’s a means to an end: power consolidation. Big banks and corporations have gigantic stakes in the biggest tech players, reinforcing a system where control outweighs accountability. And history tells us this isn’t new. Investors have ridden similar hype cycles before, only to cash out once the market bubble bursts, leaving everyone else to pick up the pieces. As they over-hype and over-deliver on AI, they’re creating a cycle where they can capitalize on our collective belief in the technology—at least until the bubble inevitably bursts.

AI’s Assault on Meritocracy and the Free Market

What’s at stake here goes far beyond flashy gadgets or “smart” services. This AI push is eroding the principles of meritocracy and a fair market. Previously, companies had to prove their worth by offering quality products, innovating, and valuing their workforce. AI and the corporate interests behind it are flipping this on its head. Why compete when you can use AI to brute-force your way to the top? AI may deliver more than humans ever could, but it’s not about providing quality—it’s about quantity and control. As the market is flooded with AI-produced content and services, genuine quality and human talent are drowned out. 

For instance, AI bots are already replacing journalists, developers, customer service agents, and more. But the quality? Subpar, to put it generously. AI isn’t near matching a human's depth, insight, or skill in these roles. Yet by flooding the market with cheap, mass-produced outputs, these companies overpower their human competitors, sidelining talent and degrading the fabric of these professions.

The Real Consequences for Society

Who pays the price? Everyday people. Workers are forced to watch their jobs diminish, replaced by automation that can never fully replicate the quality or nuance of human labour. Services and products deteriorate, but we’re expected to settle for the substandard because it’s supposedly “cutting-edge.” As more resources are funnelled into AI, other vital sectors - like healthcare, education, and social services - are deprived of the desperately needed investment.

For society, this isn’t progress. It’s regression. The promise of AI feels more like a sales pitch, another layer of the same age-old formula that got us hooked on iPhones, MacBooks, and cryptocurrency. Only now are the stakes far higher. The tech giants are creating an era where they sit on a throne built on exaggerated promises, leaving the rest of us in a reality where competition, innovation, and quality have been sacrificed for their thirst for control.

Where Does This Leave Us?

This isn’t just skepticism - it’s our reality. The current AI boom is playing out exactly as past hype cycles did, with similar long-term costs. In the near future, these AI-driven monopolies will likely collapse under their unsustainable weight as data sources become restricted and the initial promises fail to hold up. When this happens, it won’t be the corporations that suffer; it will be the people, industries, and environments left in disarray.

The AI push isn’t a revolution; it’s a warning. It’s a glimpse into a future where unchecked power, not actual progress, is the end goal. We’ve seen this pattern before, and unless we take a stand, we will see it repeat, with more devastating consequences than ever.

Get a deep dive into the article with our podcast