SUBSCRIBERS

Will AI be an economic net positive? Probably not

It’s hard to see how AI’s effects will cure the US government’s unsustainable fiscal trajectory

    • No doubt, AI is important. Yet it’s unlikely to dramatically change the nation’s long-term economic outlook.
    • No doubt, AI is important. Yet it’s unlikely to dramatically change the nation’s long-term economic outlook. PHOTO: PIXABAY
    Published Tue, Nov 18, 2025 · 03:33 PM

    THE boom in artificial-intelligence (AI) investment is undoubtedly boosting both the US stock market and the broader economy right now. But what about the longer term? Will AI be a big net positive, delivering prosperity and solving the nation’s fiscal problems?

    Most likely, I’m sorry to say, it’ll be closer to a wash.

    To assess AI’s longer-run implications for the economic outlook, one must consider three questions:

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Share with us your feedback on BT's products and services