The Future of Human Agency in AI: Navigating Risks and Opportunities for Investors

The evolution of artificial intelligence (AI) is reshaping the global economy, but its trajectory hinges on a critical question: Will human agency—our ability to retain control over decisions—erode or evolve in tandem with AI's capabilities? By 2035, the answer will determine not only the ethical and regulatory landscape but also the long-term viability of AI-driven platforms for investors, tech firms, and society.

The Tension Between Innovation and Control

Recent studies, including a 2023 Pew Research Center survey of 500 technology and policy experts, reveal a stark divide. 56% of respondents believe AI systems will not be designed to preserve human agency by 2035, citing corporate and governmental incentives to centralize control. Conversely, 44% argue that regulatory frameworks, design ethics, and societal demand for transparency will ensure AI supports human autonomy. This divergence underscores a pivotal moment: AI's integration into healthcare, criminal justice, and employment will either amplify human agency or entrench systemic inequities.

Regulatory developments in 2025 reinforce this tension. The U.S. introduced 59 AI-related regulations in 2024, with states like New York mandating public disclosure of automated decision-making tools and Arkansas clarifying ownership of AI-generated content. Globally, the UN's 2025 report emphasized a human rights-based approach, banning technologies like facial recognition that violate privacy. These measures signal a growing recognition that AI governance must prioritize transparency, accountability, and democratic participation.

Market Forces and Ethical Risks

The market for AI is booming, with U.S. private investment reaching $109.1 billion in 2024—nearly 12 times China's $9.3 billion. Generative AI alone attracted $33.9 billion in funding, driven by its potential to automate content creation, customer service, and even medical diagnostics. However, this growth is shadowed by ethical risks. For instance, 78% of companies cite data privacy as their top AI implementation challenge, while 89% report regulatory uncertainty.

Investors must weigh these risks against opportunities. Startups developing tools for bias detection, explainable AI, and ethical governance frameworks are gaining traction. For example, companies like Hugging Face and IBM have integrated fairness metrics into their models, aligning with emerging standards like the OECD's AI governance principles. Yet, many firms lag in implementation, creating a gap between ethical rhetoric and action.

UXRP: The Double-Edged Sword of User Experience

User Experience and Human Agency in AI Systems (UXRP) is a critical battleground. While AI systems are becoming more intuitive—think voice assistants, personalized healthcare apps, and autonomous vehicles—their complexity often obscures decision-making processes. A 2025 AI Index Report notes that 78% of organizations use AI, but only 30% provide users with meaningful control over outcomes. This “black-box” dynamic risks eroding trust, particularly in high-stakes domains like hiring or criminal justice.

Regulatory responses are emerging. New York's law requiring AI systems to allow employee appeals of automated decisions, and Oregon's prohibition of AI from impersonating medical professionals, highlight the push for user-centric design. Meanwhile, the OECD's AI Risk Management Framework emphasizes the need for “meaningful human control,” a concept that could redefine UXRP standards.

Strategic Implications for Investors

For investors, the stakes are clear:
1. Prioritize Ethical AI Leaders: Firms that integrate responsible AI (RAI) into their core operations—such as those developing open-weight models or transparent governance tools—are likely to outperform peers. The performance gap between closed and open models has narrowed to 1.7% in 2025, making ethical AI more accessible.
2. Monitor Regulatory Shifts: The U.S. and EU's focus on AI transparency and accountability will reshape markets. For example, the EU's AI Act, set to take effect in 2026, could penalize firms using high-risk AI systems without human oversight.
3. Assess UXRP Maturity: Companies that fail to address UXRP risks—such as opaque algorithms or inadequate user feedback mechanisms—face reputational and legal liabilities. Conversely, those that empower users (e.g., allowing opt-outs or explanations for AI decisions) will build trust and loyalty.

The Path Forward

The future of AI is not predetermined. By 2035, human agency could either be a casualty of unchecked automation or a cornerstone of ethical innovation. For investors, the key lies in balancing short-term gains with long-term resilience. This means supporting ventures that align with emerging governance frameworks, advocating for UXRP-centric design, and hedging against regulatory and reputational risks.

As AI becomes ubiquitous, the companies that thrive will be those that recognize human agency not as a constraint but as a competitive advantage. The question for investors is not whether AI will dominate the 21st century, but whether it will do so in a way that preserves the values of autonomy, fairness, and trust.