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India will be one of the biggest casualties of AI

Reality, Foxconn, Crypto Adoption, and Brain-rot

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Salutations, Olio aficionados! šŸ‘‹

Midweek greetings to all, as we unveil the 209th chapter of Weekly Olio—a delightful concoction of laughter, insight, and a sprinkle of mystery. Within these pages, you'll discover a handpicked selection of fascinating finds from the vast realms of the internet.

Keep your eyes peeled for this week’s Publisher’s Parmesan, arriving this Sunday!

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The Quote󠀢 šŸ’­

ā€œYou can ignore reality. You cannot ignore the consequences of ignoring reality.ā€

- Konstantin Kisin

The Tweet 🐦

Foxconn has moved hard into building data center for AI. Last week, they announced a partnership with OpenAI. How did an iPhone assembler end up working with a frontier AI lab? Read this interesting thread to know more.

The Infographic šŸ’¹

Despite a lot of regulatory hurdles, India remains the world’s top country for crypto adoption. Interesting bit - it is not driven by just traders or speculators but instead by retail transactions. A lot more people are using crypto more frequently for things like payments and remittances. Is this a coincidence or are there strong underlying drivers for this behavior?

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The Short Read šŸ“

This article examines an MIT study on AI's impact on learning, concluding that the key to effective use is timing. The study found that students who relied on ChatGPT from the start for essay writing produced poorer, less unique work, and suffered from "shallow encoding." They could not recall what they had written, and brain scans showed weaker connectivity, suggesting they outsourced the "heavy cognitive lifting" to the tool—an "undesirable ease."

However, a crucial nuance emerged: students who first engaged with the topic using their own minds before turning to ChatGPT (brain-first approach) performed significantly better. Their essays were superior, they used the AI for information gathering, and they retained memory of their work, showing stronger brain activity. The author concludes that early, heavy reliance on AI creates "cognitive debt," while a "brain first, ChatGPT only after" approach leverages the tool without compromising deep learning and critical thinking. Read more…

The Long Read šŸ“œ

This is an interview published by one of India’s leading newspapers with celebrated economist Ha-Joon Chang and focusses on the likely impact of AI and automation on India’s economic future. He argues that India has not achieved true industrialisation with share of industry remaining at 12-13%. Unlike other countries like South Korea, India’s early protectionist measures preserved outdated industries versus incubating ambitious high-tech players.

He attributes the failure to business elites prioritising short-term financial returns over critical long terms investments in R&D, infrastructure and worker skills. He believes that the low-value add services that India is known for are likely to be the biggest casualty of AI. He still emphasises that there is time to industrialise and atone for the sins of the past - by fixing policy and aligning incentives with long term goals. Highly recommend reading the full interview. Read more…

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That’s all for this week. If you enjoyed this edition, we’d really appreciate if you shared it with a friend, family member or colleague.

We’ll be back in your inbox 2 PM IST next Wednesday. Till then, have a productive week!

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.

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