AI's dual impact on economy in 2026

Economic Outlook for 2026

Torsten Slok, chief economist at Apollo, shares insights on the economic landscape for 2026. He emphasizes that AI advancements may present both significant risks and opportunities for growth, highlighting the dual-edged nature of technological progress in shaping future economic conditions.

Impact of AI on Employment

Slok warns that AI could lead to substantial job displacement, suggesting that millions of positions may be at risk. However, he also notes that new job creation in tech sectors could offset some losses, creating a complex employment scenario influenced by rapid AI integration.

Inflation and Interest Rates

The discussion touches on inflation trends, with Slok predicting that persistent inflation could lead to prolonged high-interest rates. He emphasizes the importance of monitoring these factors as they significantly influence consumer spending and overall economic health in the coming years.

Investment Strategies

Slok advises investors to remain cautious, suggesting a diversified approach to mitigate risks associated with economic volatility. He highlights the potential for robust returns in sectors that effectively leverage AI advancements, indicating a shift in investment priorities as technology evolves.