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Governments Face Existential Challenge in AI Era. Dylan Unruh, Dartmouth College.

As the world struggles to achieve only 35% of its Sustainable Development Goals, a new technological disruption threatens to reshape the very foundations of governance. Dr. Yasar Jarrar's analysis reveals that SDG 16—functioning government institutions—may be the critical bottleneck preventing progress on all other goals. With AI poised to create both unprecedented innovation and inequality, governments find themselves caught between the promise of technological advancement and the peril of being left behind. The challenge is no longer simply about adopting AI tools for public services, but about fundamentally preparing governmental structures for a world where artificial intelligence becomes ubiquitous. 

The timeline for this transformation is alarmingly compressed. By 2040, an estimated 10% of the population will consist of robots, chatbots, and automated systems, potentially displacing entire employment sectors overnight—from taxi drivers to various government roles. Yet most public sector employees remain comfortable in their current positions, showing little urgency for retraining or adaptation. This complacency occurs against a backdrop where governments struggle to recruit top AI talent, who are consistently drawn to higher-paying private sector opportunities. The result is a dangerous knowledge gap: how can policymakers effectively regulate technologies they don't fully understand, repeating the same struggles seen with cryptocurrency and blockchain legislation?

The path forward requires governments to embrace radical flexibility in three critical areas: digital public infrastructure, workforce reskilling, and cybersecurity preparedness. Rather than banning AI—which only disadvantages citizens in an AI-integrated future—governments must develop adaptive policies that can evolve with rapidly changing technology. This means moving beyond fixed curricula and rigid institutional structures toward dynamic frameworks that can respond to continuous technological change. The choice is stark: evolve quickly enough to remain relevant participants in an AI-driven future, or risk becoming obsolete institutions unable to serve their citizens' needs in a transformed world.


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