The rise of the digital oligarchy in the AI age

A tiny digital oligarchy now controls the infrastructure, platforms and AI systems our societies depend on, with enormous consequences for democracy and our children.

Article link: https://open.substack.com/pub/johanosteyn/p/the-rise-of-the-digital-oligarchy?r=73gqa&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true

Audio summary: https://youtu.be/PyEDq8MYR8o

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I write about various issues of interest to me that I want to bring to the reader’s attention. While my main work is in Artificial Intelligence and technology, I also cover areas around politics, education, and the future of our children.

Over the past decade, the internet has quietly transformed from a seemingly open frontier into something far more concentrated: a digital oligarchy. A small cluster of technology giants and billionaire founders now control the platforms, data, infrastructure and artificial intelligence systems that shape how we live, work and learn. They are not elected representatives, but their decisions affect elections, economies and the daily lives of billions.

As AI becomes the organising force behind search, social media, education tools and the future of work, this concentration of power raises urgent questions. Who gets to decide how AI is built and governed? What does it mean for countries like South Africa that largely consume, rather than create, these technologies? And can we really leave our children’s digital future in the hands of such a narrow elite?

CONTEXT AND BACKGROUND

When we first logged on to the early web, it felt chaotic and decentralised. Many small websites competed for attention, and there was a sense that anyone could build something meaningful. Over time, however, network effects and the hunt for data and advertising revenue pushed users towards a handful of platforms. Today, a small number of firms dominate search, social media, cloud computing, online advertising and app stores. These same firms now sit at the heart of the AI revolution.

This digital oligarchy is backed by staggering levels of investment. The largest technology companies are spending hundreds of billions of dollars on data centres, specialised chips and global networks to power AI. The rewards are equally concentrated: the tech sector has produced more billionaires than any other, and AI has further inflated the fortunes of a tiny group at the very top. Meanwhile, countries in Africa and much of the Global South rely on imported platforms and rented cloud infrastructure, with limited influence over how these systems are designed or governed.

INSIGHT AND ANALYSIS

The core problem is not that these companies exist or that they build impressive technologies. The problem is that their private, profit-driven decisions now play a role that looks very similar to public policy. Algorithm changes can amplify some voices and bury others. Platform rules can shape what counts as acceptable speech. AI systems embedded in hiring, credit scoring or education can tilt opportunities in ways that are hard to see and harder to challenge. This is policy by code, written in corporate boardrooms rather than parliaments.

In a digital oligarchy, the incentives are misaligned with the public interest. Shareholder value demands growth, engagement and control. That leads naturally to more data extraction, tighter ecosystems and subtle forms of behavioural manipulation. AI systems are optimised to keep us on platforms, to predict and influence our choices, not to strengthen democracy or protect vulnerable users. Even when individual leaders speak sincerely about ethics and responsibility, they operate within a structure that rewards expansion, not restraint.

For children and young people, this environment is particularly risky. Their schooling, friendships and entertainment are increasingly mediated by AI-enabled platforms owned by a few foreign companies. These systems quietly learn from their questions, preferences and insecurities. They suggest what to watch next, how to think about the world, and which brands to trust. In South Africa, where education and inequality are already fragile, we cannot ignore the fact that much of our children’s digital upbringing is outsourced to a distant digital oligarchy with no direct accountability to our society.

IMPLICATIONS

What should we take from this? First, policymakers need to recognise that digital and AI governance is no longer a niche topic. It sits at the heart of economic policy, education, security and democratic health. We need stronger competition enforcement to prevent a handful of firms from controlling the entire AI stack, from chips to cloud to applications. We also need clear rules for high-risk uses of AI in areas like policing, finance and schooling, with transparency and the ability to challenge automated decisions.

Second, countries like South Africa must take digital sovereignty seriously. That does not mean rejecting global technology, but it does mean building local skills, supporting regional infrastructure, and insisting that public institutions do not become utterly dependent on a few foreign vendors. Civil society, universities and the media also have a crucial role in scrutinising AI systems and amplifying the voices of those affected by them. Parents, teachers and business leaders can make more conscious choices about the tools they adopt and the digital habits they encourage.

CLOSING TAKEAWAY

The rise of a digital oligarchy is not a science-fiction plot; it is the reality we already inhabit. A narrow group of unelected technology leaders today shapes our information flows, our economic options and the digital spaces in which our children grow up. Ignoring this concentration of power is no longer an option. We need a more honest conversation about legitimacy, accountability and the kind of digital future we want to build.

That means demanding better laws and institutions, but it also means developing the confidence to say that not every technological possibility deserves automatic approval. If we want AI and digital systems to serve human flourishing rather than narrow interests, we must be prepared to challenge the digital oligarchy and reclaim some measure of control over our shared technological destiny.

Author Bio: Johan Steyn is a prominent AI thought leader, speaker, and author with a deep understanding of artificial intelligence’s impact on business and society. He is passionate about ethical AI development and its role in shaping a better future. Find out more about Johan’s work at https://www.aiforbusiness.net