Signal AI productivity gains presented as fiscal relief for ageing states

Summary

The Megatrends 2040 report presents AI-driven productivity growth as a potential source of relief for states under demographic and fiscal strain. Countries that can harness these gains are expected to seize economic opportunities. According to the report, the resulting growth could let governments offer more services, reduce national debt and cover part of the cost of an ageing population. It might even help some emerging economies avoid the middle-income trap, in which strategic advantages are lost. However, the report also warns that the benefits of technology will be unevenly distributed across and within countries, so the fiscal dividend is far from guaranteed.