MARRAKESH, MOROCCO – OCTOBER 13: Ajay Banga, President of the World Bank Group, speaks during the International Monetary Fund (IMF) meeting in Marrakesh, Morocco on October 13, 2023. (Photo by Abu Adem Muhammed/Anadolu via Getty Images)
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World Bank President Ajay Banga said on Tuesday that capital remained available despite concerns of artificial intelligence sending interest rates higher.
“It’s not really an issue,” Banga said in an interview on CNBC’s “Squawk Box.”
Banga said the World Bank mobilized $112 billion last year, around three times higher than the amount recorded three years prior.
He said investors may be concerned about circular financing and the business model tied to AI.
But Banga told CNBC that emerging markets are not running into the same hesitancy because the investments focus more on infrastructure like bridges and roads. These countries also look at smaller-scale uses of AI, he said, while developed counterparts need funding to support large use cases.
“In general, I still believe that AI is going to be transformative and profitable,” Banga said. “But everybody sees bumps in the road from here to there, and no one knows when the next bump will come.”
The financial institution, which was founded in 1944, aims to end poverty and support economic prosperity through global partnerships and funding. Before taking the top job at the bank, Banga was vice chair at General Atlantic and CEO of Mastercard.
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