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U.S. Congressional Budget Office: AI and Its Potential Effects on the Economy and the Federal Budget

Jeremy WeaverJanuary 9, 2025
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The report examines how artificial intelligence could boost economic growth and transform federal revenues and spending, while also highlighting uncertainties about its impacts on employment, wages, and the timing and scale of these effects.

U.S. Congressional Budget Office: AI and Its Potential Effects on the Economy and the Federal Budget



Summary of the U.S. Congressional Budget Office report on AI and its potential effects on the economy and the federal budget.

This Congressional Budget Office report analyzes the potential economic and budgetary impacts of artificial intelligence (AI). It examines how AI's increased efficiency and new product development could boost economic growth, potentially affecting federal revenues and spending.

The report also explores AI's uncertain effects on employment and wages, and how its government use could influence tax collection and program spending.

While acknowledging the current limited adoption of AI by businesses, the report highlights the technology's potential for long-term transformative effects on the economy and the federal budget. However, significant uncertainties remain regarding the timing and magnitude of these impacts.

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