Governments are making a dangerous bet on the AI boom

From The Economist

Governments look increasingly as if they are betting on economic growth to pay the bills—which today means a bet on ai. The trouble is that faster growth, by boosting investment, usually brings higher interest rates and higher bond yields. Today higher market rates have arrived before faster growth. The sheer scale of data-centre investment, pegged at $1trn this year by Goldman Sachs, a bank, is making capital scarcer and helping raise yields. However, AI has yet to boost productivity measurably, even in China where diffusion of the technology is arguably the furthest along.

It could be a while before the boost comes.