2026 Bund Summit: AI reshapes global economy, bringing opportunities and governance challenges

Artificial intelligence (AI) is reshaping the global economy, creating new opportunities for productivity growth and investment while raising concerns over employment, income inequality and governance, experts said at the 2026 Bund Summit in Shanghai.

Held from October 19 to 22 under the theme "Technology, Geopolitics and the Global Economy," the summit brought together leading economists, policymakers and industry experts to discuss key issues including the impact of technological advances on the global economy.

AI innovation is entering an unprecedented period of growth, transforming knowledge creation, scientific research and industries including finance, said Yang Bin, vice chairperson of the Tsinghua University Council, according to Sina Finance.

Robert Rubin, former US Treasury secretary, highlighted AI's potential to significantly boost productivity while warning of job losses and the challenges facing knowledge workers as the technology advances.

Concerns over the distribution of AI-driven gains were also raised. Huang Yiping, dean of the National School of Development at Peking University, drew parallels with the "Engels' pause" during the Industrial Revolution, when output surged but real wages stagnated for decades. He warned that if AI benefits capital more than labor, it could widen income inequality and put pressure on tax systems.

Labor demand in industries with high AI exposure has fallen by 10% relative to those with low exposure, although the decline has stabilized, said Krishna Srinivasan, director of the Asia and Pacific Department at the International Monetary Fund. The findings suggest AI may be reshaping labor markets rather than simply replacing workers, with demand remaining for those equipped with relevant skills.

Meanwhile, Claudio Irigoyen, global head of economics at Bank of America, said AI's economic impact is currently driven largely by an investment boom, benefiting countries deeply integrated into AI supply chains. The surge in investment is also influencing financial asset valuations and generating significant wealth effects.

As AI adoption accelerates, global cooperation on governance is becoming increasingly important. Zhang Wencai, managing director and chief administrative officer of the World Bank, said the next one to two years will be critical for how AI is used and regulated. He called for greater international coordination to develop common AI governance standards through inclusive dialogue.

The discussions highlighted a central challenge for the global economy: how to harness AI's potential for growth while ensuring its benefits are broadly shared and its risks effectively managed.