The artificial intelligence race is already generating forces that are transforming the global economy. That makes it surprisingly similar to the green transition, given the potential of both to upend traditional industries, labor markets and geopolitical balances. Both call for trillions of dollars in up-front investments in exchange for significant benefits over the medium and long term. The promise of AI is that it will cut unnecessary costs, boost labor productivity and help humans solve previously intractable problems.

Adam Michael Bauer & Gernot Wagner consider the strategic and economic similarities, namely massive upfront investments and labor-market shifts.

The artificial intelligence race is already generating forces that are transforming the global economy. That makes it surprisingly similar to the green transition, given the…