New Delhi, April 1 -- Former RBI governor Raghuram Rajan recently questioned whether the world could drift into an "AI nightmare" while urging governments to prepare for multiple transformative outcomes.

While warning against exaggerated doomsday narratives, he noted in a Bloomberg interview that adoption will be gradual, allowing time to reskill and adapt.

That gradual transition, however, should not encourage policy complacency.

The speed of AI development and its capacity to reshape markets, labour, and information flows make governance mandatory.

The challenge is to mitigate harm without undermining innovation, a balance that major economies are pursuing in different ways.

The US has largely opted for a sector-specific and non-pr...