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Where Will the AI Super Cycle Lead?

Although the widespread adoption of generative AI will likely drive productivity gains and stronger economic growth, the gains will accrue largely to the owners of capital, and less so to a potentially shrinking labor force. Governments will need to adjust tax and welfare policies accordingly.

LONDON – The current pace of advances in generative artificial intelligence makes it difficult to forecast how the technology will affect the economy, business, and society. Nonetheless, it already seems clear that the new AI applications will produce a narrow cohort of winners and lead to a smaller workforce, confronting governments with big policy challenges.