Before AI gains materialize, governments will have to deal with a ‘policy tradeoff,’ Moody’s says: How to handle the massive spending and debt risk

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For Moody’s Ratings, the global AI productivity boom will be worth 1.5% annually, averaged out across 106 countries, according to a Thursday research note. But in the case of economic growth, governments might have to spend money to make more of it down the line. AI could have significant upsides for productivity, but countries will first have to navigate a complicated and expensive landscape as they create digital infrastructure and support disrupted workforces, Moody’s analysts warned.

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