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Investing.com -- Artificial intelligence is poised to destabilize both domestic politics and international security, BCA Research warned, citing new developments under President Trump’s administration.
In a note published after Trump issued executive orders to accelerate U.S. AI innovation and made a rare visit to the Federal Reserve to urge interest rate cuts, BCA’s Chief Geopolitical Strategist Matt Gertken said the two events “point to deeper questions about political and geopolitical changes amid the explosive growth of artificial intelligence.”
According to Gertken, “Artificial intelligence will destabilize domestic politics and international security.”
He argued that the rapid advancement of AI technology could drive a wedge between political factions at home while inflaming distrust between global powers abroad.
“Going forward with AI, domestic political instability will remain a problem,” Gertken wrote.
He forecast that the U.S. would respond by increasing corporate taxes and adopting “more creative fiscal policy,” particularly targeting the tech sector.
On the international front, Gertken warned that military developments driven by AI will “increase strategic distrust,” while the technology’s potential to disseminate information rapidly will not necessarily lead to improved diplomatic ties.
“The spread of ideas will not necessarily increase trust,” he added.
BCA said these dynamics could create a volatile backdrop for markets and policymakers, with AI-driven disruption potentially accelerating shifts in monetary and fiscal policy frameworks.
Gertken concluded that the AI revolution could ultimately spark a period of global instability, with consequences for both economic policy and geopolitical risk.