But the note cautioned against treating AI as an “immediate fiscal windfall.” Before productivity fully kicks in, governments face upfront costs that could strain budgets already burdened by post-pandemic debt. Government spending explicitly earmarked for AI remains modest—often only a fraction of a percent of GDP—but a sea of hidden costs could make the transition much more difficult for budgets to handle.
As we walked home, my 15-year-old son asked: “Is it OK to talk to people in that way?” “What way?” He was asking about the boundaries when it comes to talking to someone about their home country.
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