Empowering AI Through Cooperative Models

5 Ways Cooperatives Can Shape the Future of AI

The development of artificial intelligence (AI) is currently dominated by a small group of large firms, including OpenAI, Alphabet, Amazon, Meta, and Microsoft. These companies leverage vast computational resources, proprietary datasets, and technical talent to control the landscape of AI. This concentration of power raises significant issues, including privacy violations, high environmental costs, and biases in AI models that can perpetuate discrimination in various sectors such as hiring, healthcare, and policing.

However, a different model is emerging—AI cooperatives. These organizations operate under cooperative principles and offer a promising alternative to the prevailing corporate AI model. They aim to democratize AI development and ensure it aligns with community needs and values.

What Cooperatives Can Do

Cooperatives have a history of managing complex systems for the collective good, from rural electrification to renewable energy. They follow seven core principles that translate democratic values into business practices, including:

  • Voluntary membership
  • Democratic control
  • Member participation
  • Autonomy
  • Education
  • Cooperation
  • Concern for community

These principles enable cooperatives to expand stakeholder participation in AI development, challenge top-down governance models, and ensure profits are reinvested into the community.

Five Interventions to Shape AI’s Future

Cooperatives can influence the future of AI in five significant ways:

1. Democratizing Data Governance

AI cooperatives, though still emerging, demonstrate a new way to manage data governance. For instance, MIDATA, a Swiss nonprofit health-data cooperative, empowers members to control their medical information and decide who can access it. This model promotes fair and transparent research while safeguarding individual privacy.

2. Bringing Research to Civil Society

The AI discourse is often confined to elite circles. Cooperatives can bridge this gap by bringing AI discussions into local communities, making the technology more accessible and grounded in public needs. Organizations like Code for Africa are already working to democratize AI technology across the continent.

3. Advancing Education

Cooperatives can play a pivotal role in closing the AI knowledge gap. By developing multilingual AI platforms for cooperative education, they can empower members and ensure equitable access to AI learning resources.

4. Building Alternative Ownership Models

Ownership significantly shapes the direction of AI development. Unlike traditional corporate models, cooperatives prioritize long-term goals and democratic governance, which can lead to more ethical AI practices. For example, resource-rich cooperatives like IFFCO and Amul can leverage AI to enhance agricultural practices while maintaining community focus.

5. Critically Adapting AI for Cooperative Ends

Not all AI applications fit well within cooperative frameworks. However, where they do, cooperatives can lead the way in redesigning AI development to ensure accountability and community benefit. Initiatives like the Gamayyar African Tech Workers’ Cooperative in Kenya exemplify this approach by giving tech workers a stake in the platforms they help create.

A Model for What’s Possible

The READ-COOP initiative is a prime example of a successful cooperative in AI. Founded with EU funding, it has evolved into a self-sustaining cooperative that democratizes access to AI tools for historical document recognition. Members actively participate in shaping the platform, ensuring its development aligns with their needs rather than commercial interests.

Barriers to Scaling

Despite their potential, cooperatives face significant barriers in the AI landscape, including limited access to capital, technological resources, and policy influence. These challenges can lead cooperatives to rely on corporate APIs, undermining their mission. To overcome these obstacles, cooperatives must secure dedicated funding and develop robust advocacy strategies to influence AI governance actively.

Building a Broad Movement

For cooperatives to remain relevant in the face of AI’s rapid evolution, they must engage with broader social movements and build networks that promote collective ownership and democratic control. By collaborating with labor unions and advocacy groups, cooperatives can effectively challenge the status quo and shape the future of AI for the common good.

Ultimately, the cooperative model presents a viable pathway for creating a more equitable and transparent AI landscape. By prioritizing community needs and democratic governance, cooperatives can redefine the role of AI in society and ensure that it serves the public interest.

More Insights

Harnessing Generative AI for Enhanced Risk and Compliance in 2025

In 2025, the demand for Generative AI in risk and compliance certification is surging as organizations face complex regulatory landscapes and increasing threats. This certification equips...

Building Sustainable Generative AI: Mitigating Carbon Emissions

Generative AI is revolutionizing industries, but it comes with a significant environmental cost due to carbon emissions from extensive compute resources. As the demand for large-scale models grows...

AI Regulation: Balancing Innovation and Oversight

Experts discuss the implications of the recently passed H.R. 1, which would pause state and local regulations on artificial intelligence for ten years. The article examines the benefits and drawbacks...

AI Governance in India: Shaping the Future of Technology

This article examines the evolving landscape of AI governance in India, highlighting both the initiatives aimed at promoting AI adoption and the regulatory frameworks being developed to manage...

AI’s Shadow: Exposing and Addressing Harms Against Women and Girls

AI's rapid advancement presents risks, especially for vulnerable populations targeted by cyber-harassment, hate speech, and impersonation. AI systems can amplify biases and be exploited to harm...

AI Readiness Framework for the Pharmaceutical Industry

This article presents an AI readiness assessment framework tailored for the pharmaceutical industry, emphasizing the importance of aligning AI initiatives with regulatory standards and ethical...

AI as a Strategic Partner in Governance

The UAE has announced that a National Artificial Intelligence System will become a non-voting member of all federal and government company boards, marking a significant shift in governance. This...

New Code of Practice for AI Compliance Set for 2025

The European Commission announced that a code of practice to help companies comply with the EU's artificial intelligence rules may only be implemented by the end of 2025. This delay follows calls from...

New Code of Practice for AI Compliance Set for 2025

The European Commission announced that a code of practice to help companies comply with the EU's artificial intelligence rules may only be implemented by the end of 2025. This delay follows calls from...