Earlier quoted context omitted.
The elephant in the room is the concept of the State. Bad corporations flurish in the shadow of bad government. Governments are supposed to safeguard the interests of the many. Over decades they used collective resources to advance the research that made IT/AI possible. They granted corporates (private interests) the license to operate, a financial system to oil them, a security system to protect them. If current IT…
Corporations lobby and bribe governments officials to keep the status quo as is. Egg or chicken first? With your framing of the issue, I wonder what would be the solution. Smaller government? That just gives more power to corporations.
That dynamic is not intrinsic to private enterprize, for-profit entities or corporate structure. You can, e.g. as a crude thought experiment, keep everything else equal, add a simple line to the tax code that the corporate rate goes up with market share and thus change monetary incentives for investors and executives.
The main difficulty is not lack of solutions (there are hordes of very sharp economists out there) but moral confusion about what a good, sustainable society looks like.
You might argue: what's new. Its always been a struggle to suppress our worst behaviors and "progress" only seemed to ever work over the long term (even that is under dispute now).
The risk is that technology is an accretive, exponential process and our collective ability to adopt governance that mitigates its risks is practically non-existent. It is based on trial-and-error (regulate or change behaviors under overwhelming social anger and pressure after the inevitable disasters).
The novelty of our condition is that one of the next "errors" might be the last.