The AI boom is a positive demand shock lifting growth, especially in the U.S. and Asian hardware suppliers, with investment potentially exceeding the spending on railroads, the electricity grid and the internet. In the long run, the article argues AI could add half a percentage point to annual global growth over the next decade, but productivity gains will take time and businesses must rethink their processes. Hyperscalers are increasingly turning to debt markets, with their share of investment-grade bond issuance rising from less than 1 percent to 10 percent in two years, while circular dealmaking adds risk. The article warns of possible market corrections, cybersecurity incidents, and job disruption, noting that roughly 40 percent of jobs globally and 60 percent in advanced economies are exposed to AI. The first policy principle it outlines is to safeguard macroeconomic and financial stability, using existing tools such as capital and concentration requirements.
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