While AI boosts productivity and can add percentages to GDP, the costs of AI infrastructure, energy, and retraining millions of unemployed workers create new budget holes. The debt burden of the US and European countries remains critical. AI is a long-term growth tool, but it is not a "magic pill" capable of instantly wiping out trillion-dollar obligations. On the contrary, the competition for AI leadership forces states to pour billions in subsidies into the industry, which in the short term only exacerbates financial instability.
Source: Reuters
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