AI-related spending is giving a significant boost to aggregate demand and GDP growth in some countries. The biggest beneficiaries so far are the US, where the bulk of the spending is occurring, and the major tech exporters including Taiwan. The diffusion of AI across the wider economy is also accelerating, with productivity gains tentatively emerging in the US. That said, diffusion is still at an early stage, especially outside the US and China, so the bulk of the productivity gains that we expect are still some way off.
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