

Recent and future developments in artificial intelligence have significant implications for economic policy, particularly with regard to financial stability, macroeconomic effects, competition, and income distribution. Alongside substantial productivity gains, new risks are emerging linked to a marked shift in income from labour to capital and the concentration of market power in the hands of a few tech giants. The global nature of the consequences for aggregate demand, inequality, and market regulation would require effective international cooperation, which is currently in serious trouble but essential to ensuring that these extraordinary innovations make a fair and widespread contribution to economic and social development.
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