February 2024 | Recent advances in the development of artificial intelligence (AI) could lead to potentially disruptive changes across a wide range of industries. Will AI significantly increase aggregate economic growth through its impact on labor markets and increases in productivity? And will it enhance the productivity of labor or displaced workers? We believe that it is inevitable that AI will be widely adopted in the long term, and that it will have a positive impact on productivity and economic growth. But while it could be a huge gain for countries where the labor force is projected to decline, investors should be mindful that AI will be disruptive in the short term and will likely adversely affect profitability and returns in a number of sectors.

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