Singapore Central Bank Warns of AI Risks as Global Economy Shows Resilience
Singapore's central bank leader has warned that heavy dependence on artificial intelligence could create new risks for growth and markets.
Chia Der Jiun from the Monetary Authority of Singapore spoke at a forum in Shanghai about how AI drives much of current economic expansion.
The AI Investment Boom and Its Uncertainties
AI spending has acted as a positive force for the world economy since 2024 even amid tensions and disruptions.
However returns on these investments remain unclear while energy and chip costs continue to rise.
Longer term issues include whether safety measures are adequate and if gains from the technology spread widely.
Such concerns mirror past technology waves where initial excitement led to later market adjustments and slower progress.
Navigating Multiple Economic Shocks
The global economy has weathered five major shocks in six years yet recovered with easing inflation and growing trade.
Many governments now face high debt and limited budgets which reduces their ability to handle future problems.
Energy supply questions add further pressure especially if disruptions worsen later this year.
Advice includes prudent policies supply chain changes and stronger ties between regions like China and ASEAN.
Ordinary people may notice effects through shifting job markets changing prices and hopes for steady overall growth.
Global cooperation stays important for dealing with repeated surprises in coming years.
