AI Growing Fast, But Most Economists Say It Won't Create Jobs: Report

The global economy is expected to remain stable or improve over the next year, but rising living costs, lower government support and uncertainty around artificial intelligence (AI) may affect growth, according to 56% of economists surveyed for a new World Economic Forum (WEF) report.

This is a marked change from May, when 89% expected the situation to get worse.

The WEF's Chief Economists' Outlook, released on Tuesday, stated that economists were still worried about several risks. Around 97% said conflicts between countries could create problems for the global economy over the next year. About 58% also expect asset prices to fall, while only around 25% believe the global economy will become stronger and better able to deal with future shocks.

Government spending and fiscal support helped economies deal with several crises since 2020. Around 69% of economists said this support was the main reason the global economy was able to deal with these shocks. 

Only 28% expect government support to play the same role over the next 12 months. The US and China are seen as being in the strongest position to handle economic shocks.

AI is expected to become more common over the next year. Around 97% of economists expect AI use to increase, while 69% believe it will help improve productivity. About 78% of economists expect investment in data centres to contribute significantly to global growth.

But the rapid growth of data centres could also face problems. Around 79% expect opposition from local communities. Data centres could also increase electricity and water costs. About 78% expect electricity prices to rise, while 58% expect water prices to increase.

At the same time, 61% of economists do not expect data-centre investment to create a large number of jobs globally. The gap between the US and China in AI could also become smaller. Around 69% of economists expect Chinese large language models to catch up with US models over the next year.

Around 77% of economists expect economic divisions between countries to increase over the next year. About 55% expect tariffs in the US to rise, while 43% expect higher tariffs in Europe. Despite this, around two-thirds of economists expect global trade to increase.

About 83% also expect Chinese exports to countries outside the US to rise. The US is expected to remain the most favourable place for multinational companies. South-East Asia and Europe are next. India is ranked fourth, while China remains fifth. Around one-third of economists expect unemployment to rise in the US, China and Europe.

The cost of living is expected to remain a major concern. Around 88% of economists expect food prices to rise, while 83% expect electricity prices to increase and 77% expect transport costs to go up. Most economists expect people's real incomes to either fall or remain unchanged in most regions.

India and South-East Asia are different. More than 60% of economists expect real incomes to increase in both regions. Governments are expected to use measures such as tax cuts on essential goods, subsidies and price controls to deal with higher costs.

Around 60% expect tax cuts on essential goods, 54% expect consumption subsidies and 50% expect price caps. Only 36% expect tax cuts specifically for low-income households, while 26% expect targeted cash payments.

The WEF survey was conducted from August 4 to 20, 2026, and included chief economists from the public and private sectors.

The report was released during the Sustainable Development Impact Meetings 2026 in New York, being held from September 21 to 24. The event brings together leaders from different sectors to discuss global economic and development issues ahead of the World Economic Forum Annual Meeting 2027.