AI Is Still Underhyped
This article summarizes a recent TED interview with Eric Schmidt about the future of AI. You can see the full video on YouTube.
Table of Contents
Introduction
In a riveting TED interview this April, former Google CEO Eric Schmidt painted a sweeping vision of artificial intelligence (AI) that is both exhilarating and ominous. Speaking with host Bilawal Sidhu, Schmidt described AI as the most significant development in human history in 500–1,000 years, urging leaders and citizens alike to “ride the wave” or risk becoming irrelevant. Here’s what you need to know from his interview.
AI Is Still Underhyped
While ChatGPT might have sparked mass interest, Schmidt believes the public still underestimates AI’s trajectory. Current breakthroughs - especially in reinforcement learning and planning - are just the beginning. “You’re seeing the arrival, the shift from language… to planning and strategy,” Schmidt explained.
The Coming Business Transformation
Schmidt predicts a future where AI agents run virtually all business processes. These agents will work in concert, speaking to each other in natural language. “Eventually, you’ll have an agent to do this, and an agent to do that,” he said. “They speak English to each other.” AI may not immediately replace people, but people who know how to use AI will replace people who do not.
The Power Problem
AI’s exponential growth is running headlong into energy limits. Schmidt testified before Congress that the U.S. may need 90 gigawatts of new power - roughly equivalent to 90 nuclear plants. “This is a major, major national issue,” he warned. It would be great to have Canada produce this energy for the US, but that is not a current priority for the US administration.
Knowledge and Creativity Bottlenecks
Even with compute power and data, Schmidt noted that AI still can’t match human creativity: “Today, our systems cannot do what Einstein did, which was to transfer tools from one domain to another based on pattern recognition.” But solving this could lead to entirely new schools of thought.
Agentic AI and Global Risk
Yoshua Bengio recently called for a halt to autonomous, agentic AI, but Schmidt says the race is already on. Instead of halting progress, he advocates for reasonable guardrails. He underscored the need for safety protocols like meaningful human control and provenance tracking. Specifically, he mentioned the US military’s DoD Directive 3000.09 (Autonomy in Weapon Systems), which requires a “human in the loop” and meaningful human control.
The U.S.–China Tension
According to Schmidt, the AI arms race is primarily between the U.S. and China, the only two nations with the capital and ambition to lead. China’s open-source posture accelerates proliferation, which Schmidt sees as both dangerous and beneficial. “Open source leads to very rapid proliferation around the world… but also to cyber and bio risk,” he warned.
The US, on the other hand, is focused on closed models, largely under very good and deliberate control.
AI businesses are network-effect businesses based on the slope of improvement. The first country to achieve general and then super artificial intelligence will never be able to be caught. The winner of superintelligence will have the keys to reinvent the world - for better or for worse - and to potentially destroy its enemies.
The logical human response is to infiltrate its competitor’s operations, steal secrets, or sabotage their competitors' work or adulterate their code. If those tactics are not successful, the next logical human escalation may be to bomb the other country’s data centers. These are real scenarios being discussed.
Achievement of this type of intelligence is likely coming within the next five years.
Dreams of Radical Abundance
Despite the existential risks, Schmidt is optimistic. He envisions AI eradicating disease, democratizing education through universal tutors, and revolutionizing healthcare delivery. “These are fixable problems. They don’t require new physics… just decisions,” he said.
The Productivity Explosion
With AI, productivity could increase by 30% annually—something economists aren’t equipped to model. “It didn’t occur in any rise of a democracy or a kingdom in our history. It’s unbelievable what’s going to happen.”
Conclusion: Adapt or Be Left Behind
Schmidt’s advice? This is a marathon, not a sprint. “Ride the wave every day,” he said. For businesses, educators, technologists, and policymakers, the message is clear: adopt AI now, or risk becoming obsolete in the near-future economy.
As AI governance standards evolve and regulatory landscapes shift, small and mid-sized businesses cannot afford to fall behind. Whether you’re just starting to implement AI or looking to align with new data protection laws and regulations, 1 Global Data Protection Advisors (1GDPA) is here to help. Our services are tailored for companies without large legal or IT teams, but who still need world-class compliance, strategy, and peace of mind.
Contact Us
If you want to learn more about how 1 Global Data Protection Advisors can help your business, please reach out for a free consultation. 1GDPA helps public, private, and non-profit organizations to leverage their data and AI systems in a responsible and legally compliant manner. 1GDPA stands ready to help you create, update, and mature your data protection, privacy, and AI governance, risk, and compliance programs.
Sources:
The AI Revolution Is Underhyped | Eric Schmidt | TED: https://www.youtube.com/watch?v=id4YRO7G0wE
5 Powerful Quotes from Eric Schmidt
“You’re seeing the arrival… of computers running all business processes.”
“AI is underhyped. Reinforcement learning is where the real power is.”
“We need 90 gigawatts of power. That’s 90 nuclear plants. It’s not happening.”
“Stopping agentic AI in a globally competitive market doesn’t really work.”
“The arrival of intelligence is the most important thing to happen in 500 years.”
