Luke Gromen Highlights AI’s Economic Impact on Banking and Investment Strategies – BitRss

Artificial Intelligence and Economic Implications

Gromen has pointed out the vulnerabilities that could arise in the banking sector due to technological advancements in AI. He suggests that as automation replaces traditional jobs, there may be stagnation in wage growth.

This shift in the economy may reflect on consumer credit, leading to potential issues in loan repayments. Gromen highlights that job losses and minimal wage increases could adversely affect credit portfolios.

Central Bank Interventions

Furthermore, it is anticipated that central banks could increase the money supply if conditions worsen. Gromen indicates that interventions may become necessary to support the financial system.