World Bank President Ajay Banga said on Tuesday that capital remained available despite concerns that artificial intelligence would raise interest rates. “It’s not really a problem,” Banga said in an interview on CNBC’s “Squawk Box.” Banga said the World Bank mobilized $112 billion last year, about three times the amount recorded three years earlier. He said investors may be concerned about circular financing and the business model linked to AI. But Banga told CNBC that emerging markets are not encountering the same hesitations because investments are focused more on infrastructure such as bridges and roads. These countries are also looking at smaller-scale uses of AI, according to Banga. Banga said their developed counterparts are seeking funding to support large use cases, which he described as the “exact opposite” need. The World Bank leader also said that the private capital he oversees does not go to governments. As a result, the organization can avoid fears of impending debt crises and challenges related to rising bond yields in some countries. “Overall, I continue to believe that AI will be transformative and profitable,” Banga said. “But everyone sees obstacles on the way from here to there, and no one knows when the next obstacle will come.” Banga’s comments come ahead of a series of interest rate decisions by central banks around the world. Economists and monetary policymakers around the world have attempted to assess how the widespread adoption of AI affects capital demand and employment. The financial institution, founded in 1944, aims to end poverty and support economic prosperity through global partnerships and financing. Before taking the bank’s top job, Banga was vice president of General Atlantic and CEO of Mastercard.
