AI boom deepens wealth inequality within and between nations
Source: Chartbook
The AI investment surge is creating a K-shaped economy. Winners concentrate in the US tech sector while the rest of the world experiences uneven spillovers. Within China, capital controls prevent wealth from flowing to those outside the state-favored tech ecosystem. This reflects how geopolitical fragmentation—US dominance in AI chips and software, China's capital restrictions—locks in structural inequality that traditional economic convergence theory cannot explain. AI deployment compounds advantages for early movers while excluding entire populations from the wealth it generates.