AI is not just technology — it’s reshaping society in ways we don’t control

If we fail to address the existential side effects of artificial intelligence, we risk a future in which human action, social cohesion and democratic stability are increasingly undermined, writes Paul Budde.

A recent international report warns that AI is fast becoming the invisible infrastructure of society and we are not prepared for the consequences.

This article is based on the report dated April 2026 Building a Human Resilience Infrastructure for Artificial Intelligence Age according to Elon University Imagining the Digital Future Center.

For me this is not new. Since what I often call “mine”1968 review“, I have argued that good ICT initiatives consistently produce existential side effects. We install systems to increase efficiency and only later discover how they reshape society in deeper, often destabilizing ways.

Artificial intelligence is the most powerful example of this model yet.

From vehicle to infrastructure

According to the report, 82 percent of experts expect artificial intelligence to significantly reshape daily life and social systems in the next decade. More than half believe it will guide or control most human decisions.

This points to a fundamental change. Artificial intelligence is no longer just a tool; It is becoming established infrastructure in finance, healthcare, employment and governance, shaping not only decisions but also the options available.

As I argue about Australia’s AI paradox: Mass adoption, minimal strategy, autonomy erodes when infrastructure is externally controlled. Artificial intelligence intensifies this dynamic.

The erosion of human agency

One of the main concerns is the gradual loss of human activity.

Artificial intelligence systems organize information, predict behavior and automate decisions, thus narrowing the space for independent evaluation. People are already postponing the outputs of artificial intelligence instead of questioning them.

This reflects a broader issue I explore in The Educated and the Uninformed: Why do tech-savvy societies need moral reasoning? Technological capability without moral judgment undermines independent thinking.

The pattern is familiar: systems designed to help are beginning to take hold. Convenience turns into addiction.

The collapse of shared reality

The report also highlights the following: ‘epistemic fragmentation’.

Personalized, persuasive, and scalable content generated by AI is undermining shared reality. Democratic processes are weakened when there is no common basis of facts.

This is based on trends already visible on social media. Artificial intelligence accelerates these dynamics.

For Australia, this is not theoretical. It directly affects democratic stability.

Upcoming ‘business earthquake’

The economic disruption will be profound. The report makes a prediction ‘business earthquake’ where most jobs will change and many will disappear.

But the deeper problem is identity. Work provides purpose and social cohesion. Break this and the consequences go far beyond employment.

Some experts say “techno-feudalA future where power is concentrated among those who control AI infrastructure and data.

Failure of political imagination

What is striking is how little policy has responded to these systemic risks.

Australia continues to approach AI through innovation and regulation. But the report calls for something more fundamental: ‘human resilience infrastructure’.

This dovetails with concerns raised at the ACCC warning about tech giants’ pressure on AI in Australia. Without domestic resilience, dependence on external systems undermines long-term stability.

Resilience must include system design that preserves accountability, governance, public understanding, and human judgment.

Beyond digital literacy

The report introduces ‘existential literacy’.

This goes beyond technical skills. It’s about understanding how AI shapes values, identity, and decision-making, and maintaining the ability to question and override automated systems.

This is especially true in the context of digital exclusion. Without targeted policy, AI risks widening existing inequalities.

The real lesson of ICT history

Throughout decades of ICT development, this pattern is consistent.

Social media has connected the world and fragmented public discourse.
Digital platforms have increased efficiency and concentrated power.

Artificial intelligence is now amplifying these dynamics at scale.

The lesson I learned from my 1968 assessment still holds true: Technological progress is never neutral. It creates structural consequences that require active management.

A narrow window for action

The report does not argue against artificial intelligence. It highlights the potential to foster innovation and solve complex problems.

But that outcome depends on how we react in the moment.

If we fail to address the existential side effects of AI, we risk a future in which human action, social cohesion, and democratic stability are increasingly undermined.

The question is no longer whether artificial intelligence will transform society.

What is important is whether we will shape this transformation or whether we will be shaped by it.

Paul Budde is an IA columnist and managing director of independent telecommunications research and consultancy. Paul Budde Consulting. You can follow Paul on Twitter @PaulBudde.

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