Macroeconomic Impact of AI

During the past decade, artificial intelligence (AI) has shifted from being an academic curiosity, becoming a driving force for reshaping economies worldwide. What once felt like speculative capabilities including machines generating code and automating complex workflows as well as optimizing global logistics and producing creative content, now became deployable tools on a larger scale across industries. AI’s rapid adoption raises several key questions among policymakers, economists and business leaders, most notably whether AI can contribute to the growth of national economic growth, and under what conditions do these gains materialize?   Macroeconomic models and strong empirical evidence suggest a positive outcome, however with notable limitations. AI, as a general-purpose technology, has more to offer than just efficiency improvements, it also functions as a key driver of innovation, productivity enhancement and transformation tool of economic structures. AI visibility and adoption have grown substantially, especially with the emergence of generative AI technologies such as exemplified ChatGPT, GitHub Copilot. This growth establishes AI as a valuable source of information and data, benefiting both firms and the border national economy, provided that this widespread adoption is backed and supported by a strong infrastructure and an adequate human capital, prepared to complement these technologies.