AI Revolution: Productivity Boom vs. Social Divide, Moody's Warns

• Moody's Ratings predicts AI will boost global productivity by 1.5% annually over the next decade, but warns of increased social strains and wealth inequality.
• Advanced economies are expected to gain more from AI (1.2%-2.9%) than emerging markets (0.4%-1.4%), leading to uneven distribution of benefits.
• Unlike past automation, AI now impacts cognitive and nonroutine tasks, threatening middle-skilled workers and potentially accelerating 'middle-class shrinkage'.
• AI could exacerbate wealth, gender, and education-based inequalities, with women and older workers in administrative roles at high risk of automation.
• Governments face transition risks, needing to balance AI's productivity gains with social and fiscal costs, potentially increasing spending on reskilling and social safety nets.