Artificial intelligence and gross domestic product: the case of the USA

The present study aims to explore the co-movement between artificial intelligence (AI) investment and real GDP for the case of the USA using the most recently available dataset from 2012 to 2023. The present study used the wavelet power spectrum and wavelet coherence approaches to capture (i) the behavior of AI investment and economic growth and (ii) the linkage between AI investment and economic growth over selected time periods. The outcomes reveal a significant vulnerability in the AI investment and economic growth series during the COVID-19 pandemic period; after 2016, there is a positive correlation between AI investment and economic growth in the USA. The outcomes indicate that while economic growth causes AI investment, AI investment also leads to an increase in economic growth. The findings suggest that U.S. policymakers should strengthen AI investment through tax incentives, subsidies, and supportive regulations, while promoting education and workforce reskilling. Ensuring ethical governance and sustainable economic growth will encourage innovation, attract investors, and position AI as a long-term driver of inclusive and resilient economic development.