If the AI bubble bursts, the US won't be the most effected country. AI LLMs have global market penetration, they're everywhere. If the US economy is being propped up by AI, so is almost every other economy in countries with decent Internet access. Sure the AI companies aren't based in these nations and are based in the US. But the workforce in almost every country with good Internet is using AI. If economic growth over the last few years is tied to AI, these nations are in a vulnerable position as a lot of GDP growth has been almost stagnant. Remove AI, and that's now negative GDP growth... The US has had decent annualised GDP growth over the past few years, it wouldn't be great if it became stagnant, but it would be better than going into the negatives. What I'm saying is that the US economy has a bigger safety net than most here, even if greater risk is involved as almost all the AI companies are from the US.

[–] Awoo@hexbear.net 5 points 4 days ago* (last edited 4 days ago)

The US GDP growth being higher is a factor of the AI infrastructure and power supply for it being constructed there. The rest of the world's GDP growth is not driven by AI except China's direct AI competition with the US but to a far lesser extent because their focus isn't AGI. Only the US' is. The rest of the world neither has had the data center construction nor the power construction to drive it, and AI itself is not a significant improvement to productivity so far as proven by multiple studies, so AI is not improving their growth, AI is driving growth solely in the country that its infrastructure is constructed in. The US will bear an absolutely enormous and catastrophic economic hit when all of the growth of the last several years driven by AI is wiped out in the crash and none of this infrastructure is useful for anything else other than AI. Other countries will take a hit but it will not be the same, it will be the knock-on effect of secondary industry related to AI.

Normal companies that happen to have workers using AI will be largely unaffected, workers will just go back to not using AI if they have to, and that won't affect productivity because AI does not improve it.