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By: citybiz
July 24, 2025

Curated TLDR

The Great AI Giveaway: Why Universal ChatGPT Is a Dangerous Distraction

While Washington debates whether to regulate artificial intelligence, the United Arab Emirates just made a radically different choice: give every citizen free ChatGPT Plus. This isn’t just misguided charity—it’s a glimpse of a dystopian future where governments hand out digital opiates instead of addressing real problems.

The timing is perverse. As Congress battles over AI safety measures and states scramble to fill the regulatory void left by Trump’s revocation of Biden’s AI executive order, the UAE has decided the answer isn’t careful governance but mass distribution. It’s as if, during debates over cigarette regulation, a government decided to mail free Marlboros to every citizen.

The New Digital Divide

Consider what “universal basic AI” actually means in practice. It’s not democratization—it’s distraction at scale. The same week the UAE announced its ChatGPT giveaway, billions globally still lack basic internet access. In America alone, nearly 10 million people don’t use the internet at all—they literally cannot access any AI tool, no matter how “universal” governments claim it to be. We’re essentially offering advanced AI assistants to populations that can’t access them, while those who can access them often lack the digital literacy to use them safely.

This creates a cruel paradox: The people who most need help navigating complex systems—applying for benefits, understanding healthcare options, dealing with legal issues—are precisely those most vulnerable to AI hallucinations and misinformation. When a government provides an AI tool as a public utility, it implicitly endorses its output. What happens when citizens make life-altering decisions based on confidently delivered falsehoods?

The Digital Placebo

We’ve seen this movie before. In 2021, Microsoft offered “free” cybersecurity upgrades to the federal government after the SolarWinds breach. The catch? Once installed, agencies would be locked in because shifting to competitors would be “cumbersome and costly.” Former Microsoft employees involved in the effort likened it to drug dealers hooking users with free samples. As predicted, when the free period ended, the entire Defense Department—and countless civilian agencies—had no choice but to pay up.

Now OpenAI is running the same playbook at unprecedented scale. When governments provide “free” ChatGPT to entire populations, they’re not just distributing software—they’re creating a generation trained on, reliant on, and locked into a single company’s product. Today’s generous partnership becomes tomorrow’s budget crisis when renewal time arrives and prices inevitably climb.

But the true cost isn’t financial—it’s societal. Universal AI is the ultimate placebo for systemic failures. We’re essentially telling citizens: “We can’t guarantee you won’t go bankrupt from medical bills, but here’s an AI that can help you write a really eloquent bankruptcy filing.” Can’t afford retirement? ChatGPT will optimize your GoFundMe. Drowning in student debt? Let AI gamify your side hustles.

This is our tech-solutionist delusion perfected—addressing the symptoms of societal failure with algorithmic band-aids while the underlying wounds fester.

The UAE’s move reveals something darker about how governments view AI: not as a tool requiring careful regulation, but as a pacifier for restless populations. It’s bread and circuses for the digital age, where the circus is an endless stream of AI-generated content and the bread is still nowhere to be found.

The Resource Trap

Every ChatGPT query burns electricity and requires water for cooling data centers—resources that could address actual human needs. The carbon footprint of universal AI adoption represents a massive misallocation of finite resources. We’re literally burning the planet to help people write better emails while ignoring the climate crisis that threatens to make those emails irrelevant.

Meanwhile, the hidden economics are staggering. OpenAI isn’t running a charity. Today’s free universal access becomes tomorrow’s budget crisis when governments face subscription renewals. It’s the classic tech playbook: create dependency, then extract value. Except now, entire nations are the users being locked in.

The Geopolitical Arms Race

The UAE’s announcement will trigger a cascade. Other nations, fearing they’ll be left behind in the “AI race,” will rush to provide their own universal AI access. We’re watching the birth of a new form of technological nationalism where countries compete not on education, infrastructure, or healthcare, but on which AI assistant their citizens use.

This is precisely backward. While the EU grapples with comprehensive AI regulation and American states fill the federal void with a patchwork of laws, the conversation should be about governing AI, not giving it away. The real competitive advantage isn’t having ChatGPT—it’s having citizens who can think critically about when and how to use it.

What We Actually Need

The path forward isn’t universal basic AI—it’s universal basic infrastructure. Before governments hand out AI assistants, they should ensure:

  • Universal broadband access that makes any digital tool usable
  • Comprehensive digital literacy education that teaches critical AI skepticism
  • Robust regulatory frameworks that protect citizens from AI harms
  • Economic policies that address the inequalities AI often exacerbates

The tech industry has masterfully reframed every societal challenge as a problem only their latest innovation can solve. But ChatGPT won’t fix healthcare costs, housing crises, or wealth inequality. These are problems of policy and politics, not prompts.

The Hard Truth

Universal basic AI is what governments offer when they’ve given up on universal basic anything else. It’s a shiny consolation prize for citizens failed by their institutions—a digital Band-Aid on societal wounds that require surgery.

The UAE’s experiment will fail, but not before other nations follow suit, wasting precious resources and attention on technological theater while real problems fester. We don’t need universal access to AI. We need universal access to the things AI can’t provide: healthcare, education, economic security, and honest governance.

Until we get our priorities straight, universal basic AI remains what it truly is: a confession of failure dressed up as innovation.

About the Author

Marcus Merrell is a 25-year software test automation architect, working with Sauce Labs to build strategic customer relationships, advise the company on product decisions, and create thought leadership about the evolving SDLC. His focus is on observability, risk management, test strategy, and post-release delivery confidence. Marcus holds a BA in Linguistics from the University of Texas in Austin.

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citybiz is a publisher of news and information about business, money, and people - including interviews, questions and answers with thought leaders. citybiz reaches business owners, C-level, senior managers and directors in 20 major U.S. city markets.