Mohamed A. El-Erian argues that the US economy faces a tension between AI’s potential to lift productivity by enhancing intelligence as an economic input, and risks from adoption friction and unintended side effects. He contends immediate market and social risks must be weighed carefully against AI’s long-term growth promise as real-world deployment unfolds. El-Erian suggests the path forward for markets and policymakers will be considerably bumpier than optimistic forecasts assume.
