A new report from JPMorgan Chase has warned that artificial intelligence (AI) could reshape global politics, economics, and power structures — potentially fueling populism and widening divisions between nations and social classes. The investment bank’s analysis paints a complex picture of how rapidly advancing AI tools are transforming productivity and opportunity but also deepening inequality and political discontent.
JPMorgan’s Global Outlook on AI and Power
According to JPMorgan’s research team, the rise of AI marks one of the most disruptive economic transitions since the Industrial Revolution. While the technology promises massive gains in efficiency and innovation, the report warns it could also lead to job displacement, social unrest, and a surge in populist movements as workers feel excluded from the benefits of automation.
“AI is not just a technological revolution — it’s a political and social one,” said Michael Cembalest, chairman of market and investment strategy at JPMorgan Asset Management. “The pace of change could outstrip the ability of governments and institutions to adapt. That creates fertile ground for populism and instability.”
The report, titled “AI and the New Global Order,” analyzes how automation, robotics, and machine learning will redistribute economic power within and between nations over the next decade. It suggests that while AI will boost global GDP, the gains will be uneven — concentrated among countries and companies that dominate data, computing, and talent.
Economic Winners and Losers
The U.S., China, and a handful of advanced economies are expected to benefit most from the AI revolution. JPMorgan predicts that companies controlling foundational models, cloud infrastructure, and semiconductor production will emerge as the new global “superpowers.” Meanwhile, developing economies that rely on cheap labor may face declining competitiveness as automation replaces human workers.
“AI will widen the gap between rich and poor nations,” the report states. “Countries that cannot integrate AI into their industries or education systems risk long-term marginalization.”
The bank also warned of widening inequality within advanced economies. Highly skilled workers in tech, data science, and engineering could see soaring incomes, while millions in traditional sectors — from manufacturing to customer service — face job insecurity.
Cembalest added, “When workers feel displaced and unheard, populist movements tend to rise. We’ve already seen that pattern with globalization and trade. AI could accelerate it on a much larger scale.”
AI and the Rise of Populism
Populism, which emphasizes anti-elite and nationalist sentiment, has been gaining strength across Western democracies for more than a decade. JPMorgan analysts argue that AI could intensify these trends by concentrating wealth and influence among a small group of tech companies and investors.
“If voters believe AI is enriching a handful of corporations while threatening their livelihoods, trust in institutions will erode further,” the report warns. “That could lead to stronger populist movements demanding protectionist or anti-tech policies.”
Experts point to previous industrial shifts — such as the loss of manufacturing jobs in the 1980s and 1990s — as examples of how technological disruption can fuel political backlash. But the speed and scale of AI’s impact could make this transition even more volatile.
Already, several countries have seen debates over AI regulation become politicized. In the U.S., AI policy is dividing lawmakers along ideological lines. In Europe, populist parties have framed AI as a threat to privacy, sovereignty, and employment.
A Shifting Global Power Map
JPMorgan’s analysis also predicts major geopolitical consequences. The report suggests that AI leadership will become a central factor in global power dynamics, similar to how oil shaped geopolitics in the 20th century.
“AI is the new energy,” the authors wrote. “Control over data and algorithms will determine which countries shape the next century’s economic and security architecture.”
China’s aggressive investment in AI, coupled with its vast population data and state-led industrial strategy, positions it as the U.S.’s main rival in the race for technological dominance. JPMorgan notes that Europe risks falling behind due to slower innovation and stricter data privacy regulations.
The report adds that emerging markets, especially in Africa and Latin America, could be caught in the middle — pressured to adopt AI technologies developed abroad while lacking the resources to build their own systems. This dynamic, the report says, could deepen digital dependency and reduce their bargaining power in global trade and governance.
The Corporate Power Shift
AI’s rise is also redistributing power within the corporate world. JPMorgan’s economists warn that the concentration of AI capability in a few companies — including OpenAI, Google, Amazon, Meta, and Nvidia — could create “mega-corporate ecosystems” with unprecedented influence.
“These companies control the hardware, the models, and increasingly the narrative,” the report states. “They will shape how economies, media, and even democratic processes evolve.”
Cembalest cautioned that governments may struggle to regulate these firms effectively. “Traditional antitrust tools were designed for the industrial era, not for digital monopolies powered by algorithms,” he said. “Without strong oversight, AI could entrench a new form of corporate oligarchy.”
Social and Ethical Tensions
Beyond economics, JPMorgan’s report highlights the moral and social challenges AI poses. Bias in algorithms, surveillance concerns, and the spread of misinformation could further divide societies. The bank’s analysts warned that “AI-driven media manipulation” might amplify polarization and weaken trust in democratic institutions.
“The political consequences of misinformation could be severe,” the report cautioned. “When AI is used to fabricate news or influence elections, the foundations of democracy are at risk.”
Human rights advocates have echoed similar warnings. They argue that governments and corporations must build ethical frameworks for AI development. Without them, they fear the technology could be weaponized by authoritarian regimes or extremist movements.
A Call for Balance and Policy Action
JPMorgan’s researchers stress that AI’s benefits are undeniable — from boosting productivity to advancing medical research — but they call for “careful management” to prevent destabilizing outcomes.
They urge governments to invest heavily in education, worker retraining, and safety nets to help citizens adapt to automation. “The political and economic cost of inaction could be far higher than the cost of preparation,” the report says.
The analysts also recommend international cooperation on AI governance. “Global coordination is essential,” the report concludes. “If AI becomes a geopolitical weapon rather than a shared tool for progress, it will divide the world more deeply than any previous technology.”
Conclusion: The Future of AI and Power
As artificial intelligence reshapes the global economy, JPMorgan Chase warns that the world is entering a new era — one where technological power translates directly into political influence.
Whether AI becomes a driver of prosperity or polarization will depend on how governments and institutions respond. For now, the message from the world’s largest bank is clear: AI’s promise comes with peril, and ignoring its political implications could ignite the next wave of populism and global power realignment.
