WEF survey: AI confidence strong, but data-centre backlash looms

The global economy is stabilizing, but chief economists surveyed by the World Economic Forum (WEF) warn that the government spending which has softened repeated shocks since 2020 may not be available to the same extent going forward.

The report flags a squeeze on household budgets as one of the most pressing near-term concerns. A large majority of respondents expect costs to rise across essentials, led by food (88%), electricity (83%) and transport (77%). It also showed that real incomes are expected to decline or stagnate in most regions, with exception in South-East Asia and India, where more than 60% of economists anticipate income growth.

Governments are expected to respond with broad, visible measures rather than targeted support. Tax reductions on essential goods (60%), consumption subsidies (54%) and price caps (50%) are seen as the most likely policy tools. 36 per cent expect tax relief aimed specifically at low-income households and just 26 per cent foresee targeted cash transfers. The findings suggest policymakers may prioritize politically visible relief over more precisely targeted interventions, even as affordability pressures persist.

On technology front, confidence in artificial intelligence remains strong. 97 per cent of economists expect AI adoption to increase over the next 12 months, and 69 per cent believe the technology will deliver meaningful productivity gains. Around 78 per cent expect data-centre investment to contribute significantly to global growth.

That optimism, however, comes with a caveat. Nearly 8 in 10 respondents (79%) expect the data-centre build-out to face significant backlash from local communities, and 61 per cent do not expect this investment wave to translate into meaningful job creation. 

Majorities also expect the expansion to push up both electricity (78%) and water (58%) prices, pointing to a growing tension between AI-driven growth and its resource and social costs. Separately, the competitive gap in the AI race is expected to narrow, with 69 per cent of economists expecting Chinese large language models to catch up to their US counterparts within the year.

Fiscal support fades as a source of resilience

Underlying both trends is a broader shift in what has kept the global economy resilient. Since 2020, 69% of surveyed economists point to fiscal support as the most significant factor helping economies absorb successive shocks. Looking ahead, however, only 28% expect government spending to play that same stabilizing role over the next 12 months.

Instead, resilience is expected to increasingly depend on flexible supply chains, technological innovation and adaptation in energy markets, with the United States and China viewed as best positioned to withstand future disruptions.

“Government support played a critical role in navigating successive crises, but fiscal capacity is likely to be more constrained going forward. The priority now is to strengthen the foundations of resilience before the next shock arrives,” said Attilio Di Battista, Head of Economic Growth and Transformation at the World Economic Forum.

According to the survey, The United States is expected to continue being the most favourable business environment for multinational companies, followed by South-East Asia and Europe, which both rose by one position. India has fallen to fourth place, while China remains in the fifth spot.

The survey was conducted between August 4 and 20, 2026, as part of the WEF's Centre for the New Economy and Society's Future of Growth Initiative.