In an interview on CNBC's 'Squawk Box,' World Bank President Ajay Banga addressed concerns regarding the impact of artificial intelligence on interest rates, stating that the availability of capital is not a significant issue. He highlighted that the World Bank mobilized $112 billion in funding last year, a substantial increase compared to three years ago.
While investors may be wary of the business models associated with AI, Banga noted that emerging markets are less hesitant, as their investments are primarily directed towards infrastructure projects like bridges and roads. He acknowledged that developed markets face challenges in securing funding for larger AI applications.
Banga remains optimistic about the transformative potential of AI, although he cautioned that there will be uncertainties along the way. His insights reflect the World Bank's ongoing mission to combat poverty and foster economic growth through global partnerships