By Larry Elliott
Publication Date: 2026-04-16 08:00:00
TThe transition to a world of artificial intelligence has given a whole new meaning to the concept that capitalism can only renew itself through creative destruction. This is the idea that outdated technologies need to be replaced with new ways of doing things, even if the process can be brutal.
This has been the case with every new wave of inventions since the beginning of the industrial age in the mid-18th century, but as machines now have cognitive capabilities and can both think and learn, the potential for economic disruption exists is even greater.
In an ideal world, policymakers would have time to adapt, making the transition smoother and less painful. There are always teething problems with new technologies, which means that companies tend to change their working practices relatively slowly. This gives governments the scope to invest in skills and artisanal industrial strategies. This is the only way to exploit the full potential of technical progress.
It also helps if…
