Chief Economists Outlook May 2025

31Chief Economists Outlook However, there are also AI-related risks that may inhibit rather than facilitate economic growth. According to the chief economists surveyed, the most important of these (albeit by a narrow margin) is the misuse of AI for disinformation and societal destabilization (53%). AI is having a profound impact on information ecosystems, through the augmentation of human creativity81 and the democratization of tools for creating advanced content.82 However, these capabilities can also be abused in ways that distort or suppress economic activity.83 Societal stability and reliable flows of information are key enablers of a vibrant market economy, and both are currently at risk of being undermined. The second risk to growth highlighted by the chief economists relates to market concentration, cited by 47% of respondents. The structure of AI technologies allows for the companies controlling the models to accumulate considerable market power, reinforcing the winner-takes-all dynamic that already characterizes much of the digital economy.84 Companies are currently racing towards the AI frontier in the hope of reaping first-mover advantages. At the same time, existing business models could be significantly disrupted, and this is cited as a risk to growth by 44% of chief economists. For many companies faced by such disruption, it is likely at best to be a costly and inefficient process to figure out new ways of doing business, while, at worst, a wave of insolvencies and higher unemployment could exert a significant drag on growth at least in the short term. Adoption and adaptation As AI becomes increasingly powerful and prevalent, both governments and businesses will have to develop strategies to harness its potential. On the government side, nine out of 10 chief economists (89%) say investment in AI infrastructure is important for harnessing AI for growth, with two-thirds also highlighting the growth benefits if the energy costs associated with AI can be driven down (69%). AI governance is becoming increasingly sophisticated to both enable and safeguard the scaling of AI solutions,85 providing for flexible measures in support of innovation, including innovation hubs, regulatory sandboxes and skills academies.86 Promoting AI adoption across key industries is highlighted by 86% of chief economists surveyed as important or very important for growth. Comprehensive national AI strategies are making this a priority.87 81 World Economic Forum. (2025f). 82 The Economist. (2025m). 83 Danielsson, J. & Uthemann, A. (2024). 84 United Nations Trade and Development (UNCTAD). (2025d). 85 World Economic Forum. (2024). 86 European Commission. (2025b). 87 Government of the Republic of Singapore. (2023).