April 14, 2026
AI may be doing more than driving hype—it’s helping prop up the US economy. Harvard economist and former IMF Deputy Managing Director Gita Gopinath says a surge in AI investment helped offset the economic drag from tariffs. “The positive effect that came from AI offset the negative effect that came from tariffs,” she explains, noting that the two were “almost equivalent.”
As part of a larger conversation in the latest episode of GZERO World, Gopinath cautions that the longer-term impact is still uncertain. While US productivity has been strong, there’s no clear, economy-wide evidence yet that AI is driving those gains. Adoption remains early, and the path to profits is still unclear.
The takeaway: AI may be cushioning the economy for now—but its lasting impact is still an open question.
More For You
Last week, Microsoft shared a five‑point set of commitments to guide its Community‑First approach to building AI and cloud infrastructure in Canada. As the company moves from investment to implementation, these commitments reflect what communities across the country say matters most: affordable and reliable energy systems, sustainable water use, good jobs, strong public services, and access to the skills needed to succeed in an AI‑driven economy. The Community‑First framework establishes a model for responsible infrastructure development—one that prioritizes affordability and sustainability while supporting long‑term economic opportunity. As demand for AI infrastructure accelerates, these commitments underscore a core principle: meaningful technological progress depends on growing in true partnership with the communities where this infrastructure is built. Read the full blog here.
Most Popular
Tisza leader Peter Magyar delivers a speech in Budapest, Hungary, on April 12, 2026, after Hungarians vote in a general election. The Tisza Party reportedly secures a two-thirds majority in parliament, marking a significant defeat for Fidesz, according to preliminary results.
Balint Szentgallay/NurPhoto
- YouTube
Harvard economist and former IMF Deputy Managing Director Gita Gopinath explains how Iran war is creating a surge in energy costs that's rippling through the global economy and pushing prices higher across everything from fuel to food.
© 2025 GZERO Media. All Rights Reserved | A Eurasia Group media company.