AI, Trade and Trust Define Global Finance Debate at Summit

Artificial intelligence is reshaping the world economy and financial systems, but global leaders said the technology's benefits and risks must be carefully managed through cooperation and sound policy.

At the Bund Summit 2025 in Shanghai, economists and policymakers warned that AI, digital currencies, and shifting trade policies are redefining global growth and governance.

The annual forum, themed "Navigating Global Transformation: New Order, New Tech," brought together international finance figures from the United States, Europe and Asia for discussion on October 23-25.

Jean-Claude Trichet, former president of the European Central Bank, said the rise of AI demonstrates the unpredictability of technological progress and its uncertain link to productivity.

"We could see a new version of the Solow Paradox – heavy investment in computing without immediate productivity gains," Trichet said. "It may take more time before AI brings real productivity growth. We must carefully assess its benefits and risks."

He observed that AI represents one of the greatest challenges in decades and called for stronger international cooperation to ensure technology benefits all economies.

Xiao Yuanqi, deputy head of China's National Financial Regulatory Administration, pointed out that AI in finance is still in its early stage and remains a tool to assist human judgment, not replace it.

"Employees are still the most valuable assets in financial institutions," Xiao said. "AI helps optimize operations and services, but it cannot replace human decision-making."

Former US Treasury Secretary Robert Rubin noted that AI will have a "powerful effect" on economies and societies, likely faster than previous technology revolutions.

He said AI also poses new global risks that require cooperation between China and the United States. "In a better ordered world, our two countries would work together to manage AI's risks. But in the world we live in today, that's not going to happen."

Rubin warned that without trust and collaboration, AI's progress could deepen inequalities and even displace human labor.

Rubin also discussed the effects of the current US administration's trade and tariff policies, calling them "misguided" and potentially harmful to global growth.

"About 82 percent of the cost of tariffs is borne by Americans," he explained. "Restricting trade makes the economy less efficient and increases consumer prices. It's a very unwise policy."

The American said efforts to limit China's access to advanced technologies could push China to innovate faster, given its strong record in technological advancement. "An open trading system between our two countries would benefit both sides."

Zhou Xiaochuan, former governor of the People's Bank of China, said AI's influence on monetary policy remains limited because economic cycles change slowly.

"AI can improve data collection and analysis. But monetary policy adjusts to long-term variables, not short-term fluctuations."

The Bund Summit 2025 features 21 public forums and 11 closed-door meetings, covering topics such as AI, digital currencies, and global economic governance.

Nobel laureate Michael Spence and leading scholars such as Hélène Rey and Jason Furman joined discussions on how technology and policy will shape growth and inequality.

Founded in Shanghai, the Bund Summit seeks to enhance China's role in global financial dialogue and promote the city's development as an international financial hub.