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The Crisis of AI Applications Under Neo-Mercantilism

  • Rania Vale Lee
  • Jun 12
  • 2 min read

Updated: Jun 18

In a world increasingly dominated by artificial intelligence, a new crisis is emerging—not technological, but ideological. The deployment of AI under the banner of neo-mercantilism threatens to replicate and deepen the exploitative patterns of past industrial eras. As AI becomes the engine of economic value, it is no longer just a tool of efficiency—it is a geopolitical weapon, a mechanism of state power, and a new form of digital enclosure.

Neo-mercantilism, in its 21st-century form, is defined by the aggressive pursuit of national advantage through the control of strategic technologies, data, and computational infrastructure. It mirrors the old mercantilist doctrine, where wealth was hoarded by empires, trade was manipulated through tariffs, and colonies were forced into resource extraction. Today, the “colonies” are the data-rich but infrastructure-poor regions of the Global South, and the “tariffs” are digital regulations, supply chain monopolies, and AI export controls.


The New Colonialism of Algorithms

Under this model, AI agents are not neutral or universal—they are optimized for the priorities of dominant powers. Language models trained in the West often ignore, distort, or erase non-Western epistemologies. Predictive systems are deployed in the service of border surveillance, financial exclusion, and social scoring. Even well-meaning applications in health or education are designed with extractive architectures: they take data, offer minimal feedback, and leave communities more dependent than empowered.


The underlying logic is clear: use AI to consolidate comparative advantage, secure data sovereignty, and suppress competition. But this approach generates fragility, not resilience. It creates asymmetrical dependencies, distorts local economies, and undermines democratic governance.


The False Promise of Techno-Development

In many countries, AI is framed as the shortcut to industrial modernization. Governments eagerly sign deals with major cloud providers, import surveillance technologies, and launch national AI strategies. But what’s often missing is a sober assessment of power dynamics. Who owns the models? Who profits from the insights? Who controls the updates?

Without sovereign infrastructure and ethical design, AI becomes a façade of progress—shiny dashboards covering hollow systems. It widens the intelligence gap between nations, locking weaker economies into platforms they cannot shape or exit.


Toward a Regenerative AI Future

As the founder of the Global Intelligence Matrix, I argue that the crisis of AI under neo-mercantilism demands a post-hegemonic response. We must move from exploitative integration to regenerative empowerment—from AI for empire to AI for equity.

This means:

  • Building local AI ecosystems with open standards and multilingual training data;

  • Designing reciprocal data systems that return value to communities;

  • Investing in public compute infrastructure that is not tied to geopolitical agendas;

  • Promoting non-aligned AI alliances among the Global South to coordinate strategy and resist digital subjugation.


We reject the idea that intelligence is a commodity to be hoarded. Intelligence must be treated as a commons, guided by values, accessible to all, and governed by those it affects.


Reclaiming the Future

The crisis of AI under neo-mercantilism is not inevitable—it is a choice. A choice to replicate the hierarchies of the past or to imagine a plural, inclusive, and ethical intelligence future.

Our task is not just to build better algorithms. It is to build a different world.

 
 
 

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