AI boom poses new financial stability risks, BIS head says

AI is also changing global trade flows. Economies closely tied to the technology supply chain, including South Korea, Singapore, Malaysia and Taiwan, have benefited from stronger export prices for AI chips and equipment.

Hernandez de Cos pointed to evidence that generative AI can significantly boost productivity. Studies have found gains of between 10% and 65% in specific tasks, particularly in coding, consulting and professional writing.

The broader question is how much of those improvements translate into economy-wide productivity growth.

Current estimates suggest AI could raise total factor productivity growth by about half a percentage point a year, depending on the pace of adoption and how effectively labour and capital are reallocated.

Advanced economies are expected to benefit first because of their larger service sectors and greater readiness to deploy AI. Emerging economies face more varied prospects, although Hernandez de Cos said India had a "genuine opportunity" to narrow the gap, helped by its digital public infrastructure.