AI to Transform Global Economy, But Job Growth a Key Risk: Eswar Prasad at Davos

• Eswar Prasad, Professor of Economics at Cornell University, warns of deep instability in the global system, marked by breakdown of political, economic, and geopolitical arrangements.
• Prasad's new book, "The Doom Loop," highlights a structural shift where globalization is no longer seen as a win-win, and institutions are losing credibility.
• Technology and AI are driving productivity gains but also concentrating economic power and fostering instability, with small disruptive nations using these tools effectively.
• While AI promises economic transformation, its impact on employment growth is a significant concern globally, potentially leading to negative feedback loops.
• Prasad suggests escaping the "doom loop" requires engaged citizens, visionary leaders, and rebuilding national and international institutions for shared prosperity.

Why It Matters: AI will reshape the global economy, but its impact on job growth poses a critical risk amid rising global instability.