Before AI gains materialize, governments will have to deal with a ‘policy trade-off,’ Moody’s says: How to handle the massive spending and debt risk

Before artificial intelligence supercharges global productivity, governments will have to deal with an unfortunate reality: the long-awaited economic windfall may be years away, while the bills are coming due now. 

Listen to the optimists, and the AI-driven economic boom is at the doorstep. The Penn-Wharton Budget Model projects AI will add 1.5% to GDP and productivity over the next decade. Goldman Sachs says it could add up to three percentage points to productivity every year. By the mid-2030s...