Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)
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Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)

For the past quarter century, Iran endured a bitter conflict between the ideological aspects of the “revolution” and the strategic view aimed at protecting the state and its interests in a changing world.

Despite hopes for radical change, attempts to achieve reform collided with resistance from the traditional centers of power, preventing real reconciliation between the contradiction in the principles of the “revolution” and the demands of national reforms, or at least achieving some form of sustainable agreement between these opposing movements.

Since 2000, Iran witnessed the election of five presidents with limited jurisdiction, and five parliamentary elections, which were dominated by either of the main reformist and conservative movements, amid the ongoing debate over the nature of rule, its agenda and priorities.

Since the 1979 revolution, the jurisdiction of the parliament and government has been fully under the control of the decision-making centers in the country, with Supreme Leader Ali Khamenei at the top of the pyramid. The supreme leader enjoys almost absolute power, making him above all state institutions.

Meanwhile, the role of the military and political institutions, such as the Iranian Revolutionary Guards Corps (IRGC) and Guardian Council, expanded as they maintained their role in protecting the ideological principles of the ruling system. The system is based on a constitution that is in turn based on the Wilayat al-Faqih. These institutions are the main tools for preserving the identity of the “Islamic Republic” and bolstering its position that is hostile to the West.

Some 45 years after its “Islamic Revolution”, Iran has yet to reconcile the contradictions between its principles and national interests. (Getty Images)

Khatami and shift in the conflict

The beginning of the new millennium in Iran coincided with a decisive moment in reformist President Mohammed Khatami’s term (1997-2005). The period was marked with the intensification of the confrontation between the reformists and conservatives. The latter sought to obstruct reforms pursued by Khatami, especially in civil freedoms and freedom of expression.

The non-elected institutions that are under Khamenei’s direct supervision, such as the Guardian Council and judiciary, played a decisive role in obstructing reform measures, creating challenges for the reformists in achieving their political and social agendas.

Khatami’s term in office witnessed a major shift in the clash between the supporters of the ideology of the revolution and those calling for achieving strategic interests. He believed that the reforms were a strategic need to secure the continuity of the system of rule and its ability to adapt to internal and external changes. His critics, however, believed that his approach threatened the very foundations of the Wilayat al-Faqih.

Iran worked on improving its relations with the West and boosting its national identity through the Dialogue Among Civilizations, but the September 11, 2001, attacks and the US invasion of Iraq in 2003 were a blow to these efforts.

Iran saw in the collapse of Saddam Hussein’s regime in neighboring Iraq an opportunity to expand its ideological influence through supporting groups that were affiliated with Iran or were established within its territory. The nuclear file also undermined the Dialogue Among Civilizations initiative and efforts to build trust with the West, thereby increasing Iran’s isolation and regional and international tensions.

The Iranian Revolutionary Guards played a main role in the nuclear program and regional wars. (Khamenei’s official website)

IRGC and the regional role

The IRGC played a main role in issues related to the nuclear program, internal developments and the wars in Afghanistan and Iraq at the end of Khatami’s term.

In Afghanistan, the IRGC supported the United States in ousting the Taliban from power. In Iraq, the IRGC’s Quds Force led armed Iraqi factions in bolstering Iranian influence that persist to this day. Under General Qassem Soleimani’s leadership, the Quds Force also expanded its operations in Lebanon, helping establish a network that ran parallel to Iranian diplomacy in regional politics.

Iran felt threatened by the US’ bolstered military presence in the region, leading it to expand its security and strategic plans, starting with the nuclear and ballistic missiles programs.

In 2002, the discovery of secret nuclear facilities aroused suspicions among the international community about Iran’s nuclear ambitions and the possibility that it would pursue the production of a nuclear bomb. Amid the rising tensions, the West shifted its priorities towards Tehran to curbing its nuclear activities. Moreover, US officials, especially during President George W. Bush’s term, threatened on numerous occasions to use military force against Iran if it continued to pursue its nuclear ambitions.

Iran has bolstered its influence in the Middle East, stoking tensions with regional powers. (AP)

Nuclear file and internal tensions

The nuclear file has been a source of tension inside and outside Iran ever since. On the domestic level, it sparked debate about the country’s national priorities. The reformists sought to maintain Tehran’s international relations and ease tensions, while the conservatives clung on to their ideological principles.

In 2003, Tehran declared that it was voluntarily ending its uranium enrichment as part of the Amad Plan agreement reached with the European troika. In return, it received a pledge that the file would not be referred to the UN Security Council and that economic ties would be established with Europe. That same year, Iran heavily promoted Khamenei’s fatwa that barred the production, storing or use of nuclear weapons.

The US, however, remained suspicious of Iran’s intentions. It believed that agreements were not enough and it accused Iran of expanding its nuclear program, leading it to impose sanctions on its banks and energy sector. During the term of President Mahmoud Ahmedinejad, it referred the program to the Security Council – a move that was welcomed by the international community. The move prompted Iran to adopt an aggressive policy against western powers.

Iran has never officially declared that it was developing nuclear weapons. In 2007, US intelligence released a report that said Tehran had stopped its nuclear weapons development in 2003, helping to soften the American position against it.

Throughout Ahmedinejad’s eight years in office, tensions rose with the West over the nuclear program. Tehran raised its level of uranium enrichment to 20 percent while the president insisted on his country’s right to the peaceful use of nuclear technology. In return, crippling sanctions were imposed on its nuclear program, oil exports and economy.

Khamenei meets with veterans from the Iraqi-Iranian war. (EPA)

Iran and the ‘Arab Spring’

On the foreign level, Iran aspired to bolster relations with Arab, African and Latin American countries. It also backed armed groups like Hezbollah in Lebanon and Hamas.

With the eruption of the “Arab Spring” revolts, Iran sought to consolidate its influence in the Middle East, especially in Iraq, Syria, Lebanon and Yemen, stoking tensions with regional powers and Arab countries. Supporting Bashar al-Assad's regime in Syria was also a top priority for Ahmedinejad before he was succeeded by Hassan Rouhani.

On the domestic level, Iran went through a huge crisis after Ahmedinejad won the 2009 elections. The wave of “Green Movement” demonstrations erupted in protest against the elections results between Ahmedinejad, and reformist candidates Mir Hossein Moussavi and Mehdi Karroubi.

After Ahmedinejad’s term ended, Iran tried to ease tensions with the West. It took part in nuclear negotiations aimed at managing tensions with the major powers. Two years of negotiations led to the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), that suspended UN sanctions on Iran and lifted restrictions on its nuclear program.

The supreme leader played a pivotal role in the negotiations. He set red lines when it came to maintaining Iran’s right to uranium enrichment, lifting economic sanctions and refusing visits to military facilities by international inspectors.

Khamenei cautiously supported Rouhani’s negotiating team at the nuclear talks despite pressure from conservative movements. The negotiations struck a balance between ideology and strategic interests as Iran sought to maintain its “revolutionary” slogans, while adapting to international changes, confronting economic and security challenges and continuing to fund its regional activities to ensure that it remained a main player in the Middle East.

The IRGC continued to consolidate Iran’s influence in the region, especially in Syria and Iraq, and Khamenei threatened to expel American forces from the region. The tensions alarmed the American administration leading then President Donald Trump to pull Washington out of the nuclear deal in 2018.

Qassem Soleimani. (Tasnim)

Patience in handling pressure

In confronting Trump’s “maximum pressure” campaign, including preventing Iran from selling oil, Tehran adopted a policy of “walking on the edge of the abyss” and of “strategic patience.” Regional tensions also spiked with the IRGC seizing oil tankers after Tehran threatened to block oil shipping lanes. Trump consequently designated the IRGC as terrorist.

Trump would also order the killing of Quds Forces commander Soleimani in Baghdad in January 2020. The move took Iranian-American tensions to a whole new level and threatened to spark a direct war between the two countries.

In a leaked 2021 recording, then foreign minister Mohammed Javad Zarif called for striking a balance between foreign policy and the policy on the field, a reference to the Quds Force that leads the IRGC’s foreign operations. The recordings exposed an internal rift between the ideological and pragmatic movements in Iran, with the latter wanting to achieve interests, such as the lifting of sanctions.

Zarif defended his conviction that diplomatic work relies on the situation on the ground and vice versa, meaning diplomacy can grant “international legitimacy” to achievements on the field.

When US President Joe Biden came to office, Khamenei used his influence to support the IRGC and showed limited leniency in managing tensions through new nuclear negotiations. Biden tried to return to the nuclear pact with Tehran, but Iran’s unprecedented nuclear measures adopted by conservative late President Ebrahim Raisi and Russia’s war on Ukraine thwarted diplomacy.

18 December 2024, Iran, Tehran: Iran's President Masoud Pezeshkian speaks during the Cabinet meeting in Tehran. (Iranian Presidency/dpa)

Raisi and the ‘revolutionary government’

Under Raisi, Tehran pursued diplomacy at the negotiating table with the West, but the talks never made it to the finish line.

His term in office was cut short by his death in a helicopter crash in May 2024. His time in power was marked by loyalty to the supreme leader’s view of forming a “revolutionary government” and limiting state power to conservatives.

Raisi effectively followed in the same footsteps as Ahmedinejad: Tehran sought rapprochement with regional forces, while hoping to circumvent sanctions and speed up its nuclear activities.

Raisi was succeeded by Masoud Pezeshkian, who was backed reformists. He pledged to maintain the policy of turning to the east and bolstering relations with China and Russia. He also sought to lift sanctions on Iran by returning to nuclear negotiations.

On the regional level, Tehran’s “shadow war” with Israel came out to the open and the two sides traded direct blows. Following Raisi’s death, Iran continued to suffer more setbacks, notably the collapse of the Assad regime in Syria and the weakening of Hezbollah and Hamas’ roles. These developments will weaken the IRGC’s regional role, but it could seek to compensate for its losses in other regions, even inside Iran itself.

Pezeshkian and internal reconciliation

Pezeshkian’s presidency is seen as an opportunity to achieve internal reconciliation in Iran at a critical time when the people are preoccupied with the issue of Khamenei’s successor. Iran is unlikely to introduce radical change to its relations with the West and Pezeshkian may be granted limited jurisdiction in the nuclear negotiations.

Soon after Trump’s re-election as president, Pezeshkian stressed the need to manage relations and the confrontation with the US. He said his government will follow the strategy of the ruling system.

Pezeshkian will likely receive the backing of the supreme leader and IRGC to reach a settlement that would ease pressure on Iran. This does not necessarily mean that Iran will be moving away from the edge of the abyss. On the contrary, it could reflect an attempt to widen the margin for maneuver amid the tensions with the West. Iran is expected to follow this approach in the near future or at least when the identity of the third supreme leader is revealed.



What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
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What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP

China's military drills around Taiwan entered their second day on Tuesday, the sixth major maneuvers Beijing has held near the self-ruled island in recent years.

AFP breaks down what we know about the drills:

What are the drills about?

The ultimate cause is China's claim that Taiwan is part of its territory, an assertion Taipei rejects.

The two have been governed separately since the end of a civil war in 1949 saw Communist fighters take over most of China and their Nationalist enemies flee to Taiwan.

Beijing has refused to rule out using force to achieve its goal of "reunification" with the island of 23 million people.

It opposes countries having official ties with Taiwan and denounces any calls for independence.

China vowed "forceful measures" after Taipei said this month that its main security backer, the United States, had approved an $11 billion arms sale to the island.

After the drills began on Monday, Beijing warned "external forces" against arming the island, but did not name Washington.

China also recently rebuked Japanese Prime Minister Sanae Takaichi after she said the use of force against Taiwan could warrant a military response from Tokyo.

What do the drills look like?

Chinese authorities have published a map showing several large zones encircling Taiwan where the operations are taking place.

Code-named "Justice Mission 2025", they use live ammunition and involve army, navy, air and rocket forces.

They simulate a blockade of key Taiwanese ports including Keelung in the north and Kaohsiung in the south, according to a Chinese military spokesperson and state media.

They also focus on combat readiness patrols on sea and in the air, seizing "comprehensive" control over adversaries, and deterring aggression beyond the Taiwanese island chain.

China says it has deployed destroyers, frigates, fighters and bombers to simulate strikes and assaults on maritime targets.

Taipei detected 130 Chinese military aircraft near the island in the 24 hours to 6:00 am on Tuesday (2200 GMT on Monday), close to the record 153 it logged in October 2024.

It also detected 14 Chinese navy ships and eight unspecified government vessels over the same period.

AFP journalists stationed at China's closest point to Taiwan saw at least 10 rockets blast into the air on Tuesday morning.

How has Taiwan responded?

Taipei has condemned China's "disregard for international norms and the use of military intimidation".

Its military said it has deployed "appropriate forces" and "carried out a rapid response exercise".

President Lai Ching-te said China's drills were "absolutely not the actions a responsible major power should take".

But he said Taipei would "act responsibly, without escalating the conflict or provoking disputes".

US President Donald Trump has said he is not concerned about the drills.

How common are the drills?

This is China's sixth major round of maneuvers since 2022 when a visit to Taiwan by then-US House Speaker Nancy Pelosi enraged Beijing.

Such activities were rare before that but China and Taiwan have come close to war over the years, notably in 1958.

China last held large-scale live-fire drills in April, surprise maneuvers that Taipei condemned.

This time, Beijing is emphasizing "keeping foreign forces that might intervene at a distance from Taiwan", said Chieh Chung, a military expert at the island's Tamkang University.

What are analysts saying?

"China's main message is a warning to the United States and Japan not to attempt to intervene if the CCP (Chinese Communist Party) uses force against Taiwan," Chieh told AFP.

But the time frame signaled by Beijing "suggests a limited range of activities", said Ja Ian Chong, an associate professor at the National University of Singapore.

Falling support for China-friendly parties in Taiwan and Beijing's own army purges and slowing economy may also have motivated the drills, he said.

But the goal was still "to cow Taiwan and any others who might support them by demonstrating that Beijing's efforts to control Taiwan are unstoppable".


Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
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Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)

The Iran-backed Houthi militias in Yemen view Israel's recognition of Somaliland as direct threat, warning that any Israeli presence in the separatist region will be considered a military target.

Somaliland declared independence from Somalia in 1991. The region has operated autonomously since then and possesses its own currency, army and police force.

Diplomatic isolation has been the norm -- until Israel's move to recognize it as a sovereign nation, which has been criticized by the African Union, Egypt, the six-nation Gulf Cooperation Council and the Saudi-based Organization of Islamic Cooperation.

The European Union has insisted Somalia's sovereignty should be respected.

Houthi leader Abdelmalik al-Houthi said Israel's move was an "act of aggression on Somalia, Yemen and the security of the region."

In a statement, he added that Tel Aviv was seeking to establish "a military and intelligence foothold" in one of the world's most important waterways. He also warned that any Israeli presence in the region will be deemed a "legitimate target" for the Houthis.

Somaliland is strategically located at the entrance of the Gulf of Aden and close to the Mandeb Strait. It is one of the world's busiest waterways.

Analysts said that Israel's recognition gives it a direct outlet to the Red Sea, boosts its ability to monitor waterways and perhaps allows it to carry out military or intelligence strikes against its rivals, notably the Houthis in Yemen.

Since October 7, 2023, the Houthis had launched rocket and drone attacks against Israel and targeted ships affiliated with it in marine shipping lanes. Israel retaliated by carrying out attacks against Houthi targets in Yemen. The attacks by both sides ended with the announcement of the ceasefire in Gaza.

Political sources said the Houthis are alarmed at the prospect of Israel having a presence in Somaliland. In their view, this will lead to them being surrounded from the southwest. They also fear that Somaliland will be used as a platform for Israeli attacks against them in Yemen.


AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”