The costs of energy and chips supporting artificial intelligence are climbing even as returns on AI investments remain uncertain, the Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun said.
Speaking at the Lujiazui Forum on 17 June, Chia described accelerating AI investment in 2024 and 2025 as a positive demand shock to the global economy.
However, he warned that growing reliance on AI could leave economic growth and financial markets vulnerable if investment expectations change.
“Global economic growth and equity market valuations are highly reliant on AI, and could slow sharply or reverse if investment assumptions are reassessed.
The returns on investments in AI are uncertain, while the costs of energy and chips have been climbing,”
he said.
Chia also highlighted medium-term risks from AI adoption. Risks could build if AI safety is not adequately addressed or its economic benefits are not widely shared.
Featured image: Edited by Fintech News Singapore, based on image by Borin via Magnific
