Challenges of Artificial Intelligence: Misinformation, Systemic Risk, and Governance
AI's 'artificial wisdom' generates persuasive synthetic information, risking widespread misinformation and systemic decision-making failures. This necessitat...
Why artificial wisdom is the biggest AI risk
The article discusses the significant risks associated with Artificial Intelligence (AI), distinguishing them by impact and mitigation difficulty. It highlights three primary risks: large-scale disruption of cognitive labor, unprecedented concentration of power due to AI's capital-intensive nature, and the pervasive 'artificial wisdom' curse, where AI-generated information is mistaken for genuine knowledge. The author argues that AI does not generate knowledge but rather predicts patterns, leading to potential misinformation and systemic risks in decision-making. The article concludes by emphasizing the urgent need for a new global governance architecture, including technical and institutional safeguards, to ensure responsible AI deployment, drawing parallels with nuclear non-proliferation.
Syllabus mapping
Mains syllabus topics
Governance Transparency Accountability
Emotional Intelligence
Prelims takeaways
- AI poses risks related to cognitive labor disruption, concentration of power, and 'artificial wisdom'.
- AI systems are trained on data to predict patterns, not to generate knowledge, which requires context, judgment, and experience.
- The capital-intensive nature of AI development leads to concentration of ownership and control, potentially creating strategic chokepoints.
- There is a critical need for a new global governance architecture for AI, including technical and institutional safeguards, and clear liability frameworks.
- The article draws an analogy between AI governance and nuclear non-proliferation efforts.
Elimination traps
- Confusing AI's ability to generate human-like text or summarize information with its capacity to generate genuine knowledge.
- Overlooking the systemic risks posed by AI influencing decisions without qualified human verification.
- Assuming AI will inevitably lead to mass unemployment without considering historical precedents of technological shifts creating new forms of employment.
Static concepts
- Artificial Intelligence (AI)
- Cognitive labor
- Geopolitical leverage
- Non-proliferation agreement
- Accountability and Liability
- Knowledge vs. Information
Probable question areas
Question areas
- What are the major risks associated with the rapid advancement and deployment of Artificial Intelligence, particularly in the Indian context?
Question areas
- Discuss the distinction between AI-generated information and human knowledge, and its implications for society and governance.
Question areas
- Analyze the economic consequences of AI, focusing on its impact on labor markets and the concentration of power.
Question areas
- What kind of regulatory and governance framework is necessary to ensure the responsible development and deployment of AI globally and nationally?
Question areas
- Critically evaluate the statement that 'artificial wisdom' is the biggest AI risk.
UPSC concepts in this story
Durable syllabus ideas for revision — not article memory.
Previous year Prelims questions on overlapping themes and topics.
Consider the following statements with reference to the Sagarmala Programme of the Government of India :
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
Which of the following relationships among the above statements is/are correct ?
1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
Select the answer using the code given below :
Explanation
Correct answer
B. 1 and 2
Relationship 1 is Correct: Statement I outlines the core objective of the Sagarmala Programme, launched in 2015, which is port-led economic development through cost-effective and sustainable coastal infrastructure. Statement II provides empirical evidence of its success, such as the 118% growth in coastal shipping, a 700% surge in inland waterway cargo movement, and improved global port rankings (with nine Indian ports now in the global top 100). Thus, the tangible achievements in Statement II directly validate the effectiveness of the foundational strategies mentioned in Statement I. Relationship 2 is Correct: Statement III highlights the goals of Sagarmala 2.0, which focuses on smart ports, green shipping, and positioning India as a global maritime innovation hub aligned with the Viksit Bharat 2047 and Atmanirbhar Bharat visions. This acts as an evolutionary extension of the foundational infrastructure goals in Statement I, embedding them into a broader, future-oriented innovation framework rather than replacing them. Relationship 3 is Incorrect: Statement I does not contradict Statement III. The initial focus on traditional and sustainable coastal infrastructure in the original Sagarmala Programme serves as the necessary physical base upon which the modern innovation and technology-driven goals of Sagarmala 2.0 are built. The two phases are complementary and represent a progressive policy evolution, not a contradiction. Therefore, relationships 1 and 2 are correct, making Option B the correct choice.
Indian Economy
Science & Technology
Social Justice & Development
Indian Hydrography & Water Bodies
Emerging Information Technologies
Which one of the following pairs of semiconductor plants in India and their locations is **not** correctly matched?
| Semiconductor Plant | Location |
|---|---|
| (a) CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics | Gujarat |
| (b) Tata Semiconductor Assembly and Test Pvt. Ltd. | Assam |
| (c) HCL-Foxconn Joint Venture India Chip Ltd. | Madhya Pradesh |
| (d) SicSem Pvt. Ltd. | Odisha |
Explanation
Correct answer
C. HCL-Foxconn Joint Venture India Chip Ltd. : Madhya Pradesh
Option A is correctly matched: The Union Cabinet approved the Outsourced Semiconductor Assembly and Test (OSAT) facility by CG Power and Industrial Solutions (in partnership with Renesas Electronics and STARS Microelectronics) to be set up in Sanand, Gujarat. Option B is correctly matched: Tata Semiconductor Assembly and Test Pvt. Ltd. (TSAT) is establishing a greenfield semiconductor assembly and test facility in Jagiroad, Assam. It marks a major industrial investment in Northeast India. Option C is incorrectly matched: The OSAT facility by the HCL-Foxconn Joint Venture (India Chip Pvt. Ltd.) is being established in Jewar, Uttar Pradesh (in the Yamuna Expressway Industrial Development Authority region), not Madhya Pradesh. It will manufacture display driver chips. Option D is correctly matched: SicSem Pvt. Ltd. is setting up a Silicon Carbide (SiC) semiconductor manufacturing plant in Bhubaneswar, Odisha. It is designed to be India's first commercial compound semiconductor fab. Therefore, Option C is the correct answer.
Science & Technology
Indian Economy
Emerging Information Technologies
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:
Explanation
Correct answer
A. 1, 2 and 3
Statement 1 is Correct: Real-World Asset (RWA) Tokenization is the process of converting the ownership rights of physical or traditional financial assets (such as real estate, gold, commodities, or bonds) into digital tokens on a distributed ledger or blockchain. Each token represents a proportional share or claim on the underlying asset. Statement 2 is Correct: Unlike traditional financial markets and real estate registries that have fixed operating hours, geographic limitations, and settlement delays, blockchain-based tokenized assets can be traded globally, 24 hours a day, 7 days a week, with near-instant settlement. Additionally, tokenization allows high-value, traditionally illiquid assets to be divided into smaller, affordable fractions. This lowers the barrier to entry, enabling retail investors and underserved populations to participate in wealth-building markets, thereby directly promoting financial inclusion. Statement 3 is Correct: In the Indian context, RWA tokenization democratizes access to high-growth, capital-intensive sectors (like commercial real estate, agricultural land, and infrastructure projects). Regulatory bodies like the IFSCA (in GIFT City) have already begun approving tokenization platforms under regulatory sandboxes to unlock these previously inaccessible investment opportunities for everyday Indian retail investors. Therefore, all three statements are correct, making the correct option A.
Indian Economy
Science & Technology
Digital Financial Infrastructure
Emerging Information Technologies
Financial Markets & Instruments
The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?
1. It is networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
2. It is an effort to increase RBI’s control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below:
Explanation
Correct answer
A. 1 only
A core banking solution is a centralized system that integrates various banking functions across a bank's branches. It allows for:
- Networked branches: Customers can access their accounts and conduct transactions from any branch within the bank's network, regardless of where they originally opened their account.
- Improved efficiency: CBS automates many manual processes, leading to faster transactions and better customer service.
- Centralized data management: All customer information and account data are stored in a central location, facilitating easier access and record keeping. Therefore, the correct answer is 1 only.
Indian Economy
Science & Technology
Digital Financial Infrastructure
Emerging Information Technologies
Consider the following statements with respect to the AI Impact Summit, 2026 held in New Delhi :
1. The Summit's intellectual framework was based on three foundational Sutras : People, Planning, and Progress.
2. The Preamble of the Summit stresses Democratising AI Resources, which acknowledges the Charter for Democratic Diffusion of AI as a binding framework to support locally relevant innovation and strengthen resilient AI ecosystems while respecting national laws.
3. The New Delhi Declaration on AI Impact was structured around seven Chakras (Pillars), which included Access for Social Empowerment, AI for Science, and Secure and Trusted AI.
Which of the statements given above is/are correct ?
Explanation
Correct answer
D. 3 only
Statement 1 is Incorrect: The Summit's intellectual framework and core philosophy were anchored in three foundational principles (Sutras): People, Planet, and Progress, not People, Planning, and Progress. Statement 2 is Incorrect: The New Delhi Declaration introduced the Charter for Democratic Diffusion of AI to promote affordable access to foundational AI resources, support local innovation, and build resilient AI ecosystems. However, it was established as a voluntary and non-binding framework, respecting national laws, rather than a binding treaty. Statement 3 is Correct: The New Delhi Declaration on AI Impact was structured around seven thematic pillars of action, officially referred to as Chakras. These foundational areas included Access for Social Empowerment, AI for Science, and Secure and Trusted AI, alongside Democratizing AI Resources, Economic Growth & Social Good, Human Capital Development, and Resilient, Efficient & Innovative AI Systems. Therefore, option D is the correct answer.
Science & Technology
Current Affairs
Emerging Information Technologies
In India, it is legally mandatory for which of the following to report on cybersecurity incidents?
1. Service providers
2. Data centres
3. Body corporate
Select the correct answer using the code given below:
Explanation
Correct answer
D. 1, 2 and 3
In India, section 70-B of the Information Technology Act, 2000 (the IT Act) gives the Central Government the power to appoint an agency of the government to be called the Indian Computer Emergency Response Team. Further, it is legally mandatory for service providers, data centres and body corporates to report on cybersecurity incidents as outlined in the Information Technology (The Indian Computer Emergency Response Team and Manner of Performing Functions and Duties) Rules, 2013, which were notified under the Information Technology Act, 2000.
Science & Technology
Indian Polity & Governance
Emerging Information Technologies
Constitutional & Statutory Bodies
Consider the following
1. Aarogya Setu
2. CoWIN
3. Digi Locker
4. DIKSHA
Which of the above are built on top of open-source digital platforms?
Explanation
Correct answer
D. 1, 2, 3 and 4
An open-source digital platform is essentially a software platform where the underlying code is freely available for anyone to see, modify, and distribute. This openness fosters collaboration, transparency, and innovation in software development. All of the above (1. Aarogya Setu, 2. CoWIN, 3. Digi Locker, 4. DIKSHA) are built on top of open-source digital platforms. - Aarogya Setu initially wasn't open-source, but the Indian government later made its source code available. - CoWIN leverages open-source software for its development. - DigiLocker utilizes an open-source platform called Digital Locker System.
- DIKSHA is built on the open-source platform Sunbird.
Science & Technology
Indian Polity & Governance
Emerging Information Technologies
Welfare Schemes & Social Policies
Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables
1. individuals of a country to accumulate more capital.
2. increasing the knowledge, skill levels and capacities of the people of the country.
3. accumulation of tangible wealth.
4. accumulation of intangible wealth.
Which of the statements given above is/are correct?
Explanation
Correct answer
B. 2 and 4 only
Human capital formation refers to the process of increasing the stock of knowledge, skills, and experiences that people in a country possess. This intangible wealth is what makes a workforce productive and adaptable.
Therefore, statement 2 and 4 are correct.
Indian Economy
Labor & Demographic Economics
With reference to the Digital India Land Records Modernisation Programme, consider the following statements :
1. To implement the scheme, the Central Government provides 100% funding.
2. Under the Scheme, Cadastral Maps are digitised.
3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.
Which of the statements given above are correct?
Explanation
Correct answer
D. 1, 2 and 3
* Statement 1: Correct. The Digital India Land Records Modernisation Programme (DILRMP) is 100% centrally funded by the Central Government for Union Territories and North-Eastern States. For other states, the funding pattern may vary, but it largely involves central assistance for implementing the scheme. * Statement 2: Correct. Cadastral Maps (detailed maps showing boundaries of individual land parcels) are being digitized under the scheme. This aims to create accurate digital land records, enabling better governance and reduced disputes. * Statement 3: Correct. An initiative has been undertaken to transliterate Records of Rights (RoR) from local languages into languages recognized by the Constitution of India. This improves accessibility and ensures land records are understood by a wider audience.
Indian Polity & Governance
Science & Technology
Welfare Schemes & Social Policies
Emerging Information Technologies
With reference to Web 3-0, consider the following statements :
1. Web 3-0 technology enables people to control their own data.
2. In Web 3-0 world, there can be blockchain based social networks.
3. Web 3-0 is operated by users collectively rather than a corporation.
Which of the statements given above are correct?
Explanation
Correct answer
D. 1, 2 and 3
Statement 1 is correct. A key aspect of Web 3.0 is the concept of decentralization, where users have more control and ownership over their personal data, rather than having it stored and controlled by centralized platforms. Statement 2 is correct. Blockchain technology is a core component of Web 3.0, and it can enable the creation of decentralized, user-owned social networks and platforms. Statement 3 is correct. The decentralized nature of Web 3.0 means that it is not controlled by a single corporation or entity, but rather operated and maintained collectively by the users and participants in the network. Therefore, all three statements regarding Web 3.0 are correct.
Science & Technology
Emerging Information Technologies
Previous year Mains questions mapped to overlapping GS syllabus topics.
"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.
Governance, transparency, accountability and e-governance
Government policies and interventions
Development processes, NGOs, SHGs and stakeholders
View Mains PYQ
What are environmental pressure groups? Discuss their role in raising awareness, influencing policies and advocating for environmental protection in India.
Executive, Judiciary and pressure groups
Development processes, NGOs, SHGs and stakeholders
Governance, transparency, accountability and e-governance
View Mains PYQ
Civil Society Organizations are often perceived as being anti-State actors than non-State actors. Do you agree? Justify.
Governance, transparency, accountability and e-governance
Executive, Judiciary and pressure groups
Development processes, NGOs, SHGs and stakeholders
View Mains PYQ
e-governance projects have a built-in bias towards technology and back-end integration than user-centric designs. Examine.
Governance, transparency, accountability and e-governance
View Mains PYQ
Given below is the quotation of a great thinker. What does this quotations convey to you in the present context?
"Those who in trouble untroubled are, Will trouble trouble itself." – Thiruvalluvar
Aptitude and foundational values for Civil Service
Emotional intelligence in administration and governance
Contributions of moral thinkers and philosophers
View Mains PYQ
Discuss the 'corrupt practices' for the purpose of the Representation of the People Act, 1951. Analyze whether the increase in the assets of the legislators and/or their associates, disproportionate to their known sources of income, would constitute 'undue influence' and consequently a corrupt practice.
Representation of People's Act
Governance, transparency, accountability and e-governance
View Mains PYQ
According to the article, what is the primary concern associated with the 'artificial wisdom' curse?
Explanation
The article explicitly states that the 'artificial wisdom' curse is unique to AI and potentially the most pervasive because it involves society gradually internalizing the dangerous misconception that AI generates knowledge, leading to misinformation and systemic risks when AI-generated information is mistaken for genuine knowledge.
Which of the following best describes the economic nature of developing frontier AI models, as highlighted in the article?
Explanation
The article states, 'The economics of AI are inherently capital-intensive. Developing frontier models requires enormous investments in computing infrastructure, energy, specialised talent and proprietary data.'
The article draws a parallel between the urgent need for a new global governance architecture for responsible AI deployment and which historical challenge?
Explanation
The article concludes by stating, 'Humanity has avoided nuclear catastrophe for eight decades. The hope is that it should be able to navigate AI too,' explicitly drawing a parallel with a global non-proliferation agreement on disruptive AI.
"The curse of 'artificial wisdom' is unique to AI and potentially the most pervasive because it is the least understood." In light of this statement, discuss the implications of mistaking AI-generated information for genuine knowledge and suggest institutional and technical safeguards required for responsible AI deployment.
Introduce 'artificial wisdom' as distinct from human knowledge, elaborate on its implications (misinformation, systemic risk, erosion of expertise), then discuss technical and institutional safeguards, drawing from the article's suggestions for governance.
The capital-intensive nature of Artificial Intelligence (AI) development is leading to an unprecedented concentration of power, posing significant geopolitical and economic risks. Examine this statement and discuss the necessity for a global governance architecture, including international treaties, to manage these challenges effectively.
Explain how AI development leads to power concentration (capital, talent, data), detail the geopolitical and economic risks arising from this concentration, and then outline the need for global governance, drawing parallels to historical resource management and suggesting specific mechanisms like international treaties.