Our new, proprietary AI Economic Impact Index suggests that the US will lead and be one of the main beneficiaries of the AI revolution. This will widen its outperformance over the euro-zone, and also make income convergence harder for emerging markets. China will be near the forefront in some aspects of AI innovation but struggle to take full advantage of the possibilities that the technology allows. This is in part because AI is likely to become a new fault-line in the fracturing of the global economy, which will reduce China’s access to western technology.
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