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watch nowVIDEO09:23Watch CNBC’s full interview with World Bank President Ajay BangaSquawk Box
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, according to Banga. Banga said developed counterparts look to funding to support large use cases, which he described as the “exact opposite” need.
The World Bank leader also said that the private capital it oversees does not go to governments. As a result, the organization can avoid fears of looming debt crises and challenges related to rising bond yields within some countries.
“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.”
Banga’s comments come ahead of a string of interest rate decisions from central banks around the world. Economists and monetary policymakers across the globe have been attempting to guage how the widespread adoption of AI impacts demand for capital and employment.
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.
