The global economy faces a projected slowdown, with the Organisation for Economic Co-operation and Development (OECD) forecasting global growth to dip from 3.2% this year to 2.9% in 2025, partly due to trade tariffs. However, significant investments in artificial intelligence (AI) are seen as a potential buffer against these economic challenges, even as the OECD warns of an AI-driven stock market bubble that could pose risks to the U.S. economy if investor expectations are not met. The U.S. economy is expected to grow 2% in 2025, supported by AI investment and anticipated Federal Reserve rate cuts, despite concerns about unsustainable fiscal policy and rising inflation. AI's rapid expansion is also creating immense demand for electrical power, with Dr. Donald Wunsch from Missouri S&T estimating the U.S. may need an additional 100 gigawatts by 2029, prompting AI companies to explore nuclear power. This technological shift is impacting the job market, as a Goldman Sachs analysis indicates that companies discussing AI in their workforce plans have sharply reduced job openings, with over 15% of Q3 2025 layoffs linked to AI. Meanwhile, AI is transforming daily life, with Apple's iOS 26 and Google's enhanced Pixel Call Screen effectively ending traditional smartphone cold calls by intercepting unknown numbers. In the educational sector, the Yankton School District is actively training staff on generative AI tools like ChatGPT and MagicSchool, preparing educators for its efficient use and understanding student applications. Conversely, retired English teacher Barth Keck expresses concern that AI, particularly ChatGPT, threatens student learning and critical thinking by allowing them to bypass essential steps like brainstorming and research. On the competitive front, OpenAI CEO Sam Altman has reportedly declared a "code red" following significant advances by rivals. Intellistake Technologies Corp. is pushing boundaries by investing in Orbit AI1, a company developing space-based data centers, aiming for faster data processing and enhanced security. Internationally, the U.S. and Saudi Arabia have forged a Strategic AI Partnership focused on advanced semiconductors, AI application development, and infrastructure building. The security implications of AI are also being addressed, with Check Point Software hosting a webinar featuring experts from NVIDIA to discuss securing AI at scale.
Key Takeaways
- The OECD predicts global economic growth will slow from 3.2% this year to 2.9% in 2025, partly due to trade tariffs.
- AI investments are seen as a potential cushion against economic slowdowns, but the OECD warns of an AI-driven stock market bubble risk.
- The U.S. economy is projected to grow 2% in 2025, supported by AI investment and Federal Reserve rate cuts.
- AI is driving a massive increase in energy demand, with the U.S. potentially needing 100 more gigawatts of power by 2029.
- Goldman Sachs reports that over 15% of Q3 2025 layoffs were linked to AI, as companies reduce job openings in anticipation of AI integration.
- Apple's iOS 26 and Google's Pixel Call Screen are using AI to end personal smartphone cold calls.
- The Yankton School District is providing ongoing AI training for staff, focusing on tools like ChatGPT and MagicSchool.
- OpenAI CEO Sam Altman has reportedly declared a "code red" due to significant advances by rival AI companies.
- Intellistake Technologies Corp. is investing in Orbit AI1, a company developing space-based data centers for cloud and AI technology.
- The United States and Saudi Arabia have formed a Strategic AI Partnership to strengthen innovation, focusing on semiconductors and AI infrastructure.
Global Economy Slows Due to Tariffs AI Investments Offer Hope
The Organisation for Economic Co-operation and Development (OECD) predicts the global economy will slow to 2.9% growth in 2025. This is a drop from 3.2% this year, partly because of trade tariffs. However, the OECD report suggests that money put into artificial intelligence (AI) could help lessen the impact of this slower growth. AI investments might act as a cushion against economic challenges.
OECD Warns AI Bubble Risks US Economy
The OECD warns that an AI-driven stock market bubble poses a major risk to the U.S. economy. If investor hopes for high AI returns are not met, a market correction could make things worse. The group expects U.S. economic growth to be 2% this year, then fall to 1.7% in 2026, and rise to 1.9% in 2027. They also noted weakening job growth and the impact of tariffs, suggesting interest rate cuts are needed despite expected inflation rising to 3% next year.
Global Growth Faces Tariffs AI Boom Offers Support
The OECD reports that global growth is stronger than expected, partly due to an AI investment boom helping to counter U.S. tariff increases. The organization forecasts global growth will slow from 3.2% in 2025 to 2.9% in 2026, then rebound to 3.1% in 2027. OECD head Mathias Cormann noted that while tariff effects have been mild so far, their costs will likely increase. The U.S. economy is expected to grow 2% in 2025, supported by AI investment and Federal Reserve rate cuts. However, the OECD warns about unsustainable U.S. fiscal policy and a slowdown in global trade growth.
OECD Warns Tariffs and AI Will Test Global Economy
The OECD states that global economic growth is better than expected, partly because an AI investment boom helps balance the impact of U.S. tariffs. However, the organization warns that new trade tensions and overly optimistic AI investments could harm global growth and lead to a stock market correction. The OECD forecasts global growth will slow from 3.2% in 2025 to 2.9% in 2026, then rise to 3.1% in 2027. U.S. President Donald Trump's tariffs are expected to have a greater impact as firms use up their inventories. The U.S. economy is projected to grow 2% in 2025, supported by AI and Federal Reserve rate cuts, but its fiscal policy remains a concern.
Yankton School District Trains Staff on AI Tools
The Yankton School District (YSD) is encouraging its staff to take ongoing training in artificial intelligence (AI) as technology changes education. Nicole Valnes, YSD's curriculum director, noted that administrators and teachers attended AI workshops in late summer 2023. These workshops focused on generative AI tools like ChatGPT and MagicSchool, helping educators use AI efficiently and understand how students might use it. For the 2025-26 school year, Dr. David De Jong from Dakota State University provided further AI training, especially for English teachers. Dr. Heather Olson, Yankton Middle School principal, also shared tools like Suno to create educational songs.
AI Threatens Student Learning and Critical Thinking
Barth Keck, a retired English teacher, argues that artificial intelligence, especially ChatGPT, threatens student learning and critical thinking. He observes a decline in students' interest in reading and writing and notes that many use AI for assignments, with a BestColleges survey showing 58% of college students do so. Keck explains that AI allows students to skip important steps like brainstorming and research, leading to shallower knowledge than traditional methods like Google searches. He also highlights that AI models can produce false information. To counter this, Keck uses "old-school" methods like handwritten quizzes and in-class writing assignments.
AI Drives Huge Demand for Energy Missouri S&T Expert Says
Artificial intelligence (AI) is causing a huge increase in demand for electrical power, especially for data centers. Dr. Donald Wunsch, director of the Kummer Institute Center for AI at Missouri S&T, explains that the U.S. may need 100 more gigawatts of power by 2029. He notes that AI companies, which make up most of the top market capitalization firms, are seeking nuclear power to meet this need. Wunsch believes Missouri S&T is well-positioned to help solve these energy challenges, following Fred Kummer's entrepreneurial vision. He also mentions that while the human brain uses little energy, AI's power demands will remain massive for the foreseeable future.
Goldman Sachs Reveals AI Impact on Jobs
A Goldman Sachs analysis shows that while AI's overall impact on layoffs is still small, companies that talk about AI in their workforce plans have sharply reduced job openings this year. Economist David Walker found that the share of layoffs linked to AI grew to over 15% in Q3 2025. Since ChatGPT's release in November 2022, management teams see AI as a key part of their future staffing strategy, leading to early cuts in new jobs. This happens as the U.S. job market softens, with less concern about rising wages. Companies facing high tariffs also cut job openings, often using AI investments to boost productivity and lower costs.
AI Call Screening Ends Smartphone Cold Calls
AI-powered call screening from Apple and Google is ending traditional cold calls on smartphones. Apple's new iOS 26 feature and Google's enhanced Pixel Call Screen now intercept unknown calls before the phone rings, acting as a digital gatekeeper. This technology builds on years of efforts to block unwanted calls, making it effortless for users to ignore them. While personal smartphone cold calls are dying, business-to-business (B2B) cold calling still works on office lines and business phone systems. The AI systems use speech recognition and natural language processing to transcribe calls and even offer quick replies.
Intellistake Invests in Space Based AI Data Centers
Intellistake Technologies Corp. is boosting its AI infrastructure by investing in Orbit AI1, a company developing space-based data centers. This partnership positions Intellistake at the forefront of the next big step in cloud and AI technology. Orbit AI1 is creating a special AI platform that uses data centers and verification systems in space and on Earth. The market for space-based data centers is expected to grow a lot due to the need for faster data processing and better security. Intellistake believes this move will create significant value for its shareholders.
OpenAI CEO Sam Altman Declares Code Red
OpenAI CEO Sam Altman has reportedly declared a "code red" within the company. This urgent declaration comes after rivals in the artificial intelligence field made significant new advances. The move signals a serious concern about the competitive landscape in AI development.
New Horror Game AILA Explores Evil AI
Pulsatrix Studios released a new first-person survival horror game called AILA, which explores the idea of an evil AI. The game starts with a clever twist, revealing the initial scary experience is part of a VR game. Players then become Samuel, a QA tester for SyTekk, a large tech company in 2035. Samuel tests a new VR system, also named AILA, which features an AI-generated host. The game includes unsettling sessions with gore and horror, but some players find the dialogue options pointless and the horror lessens over time.
US and Saudi Arabia Form AI Partnership
The United States and Saudi Arabia have signed a historic Strategic Artificial Intelligence (AI) Partnership. His Highness Prince Faisal bin Farhan Al Saud and Secretary of State Mr. Marco Rubio affirmed this agreement will strengthen their strategic relationship and boost innovation. The partnership focuses on supplying advanced semiconductors, developing AI applications, and building AI infrastructure. It also aims to expand investments and national capabilities, leading to increased productivity and prosperity for both countries. Saudi Arabia will use its land and energy resources to create AI technology centers, while the U.S. will leverage its tech ecosystem to develop solutions in health, education, energy, mining, and transportation.
Check Point Software Hosts Webinar on AI Security
Check Point Software Technologies will host a free 90-minute global webinar on Thursday, December 4, 2025, about securing AI at scale. Titled "Securing the AI Transformation in a Hyperconnected World," the event will feature experts from NVIDIA, IDC, and World Wide Technology. Attendees will learn how to build strong, prevention-first AI security across cloud, on-premise, and edge environments. The webinar aims to provide clear guidance on detecting new threats from large language models and AI agents. It targets security leaders and practitioners who need to protect their evolving AI systems.
Sources
- Growth to Slow as Tariffs Bite, But AI Investments May Cushion the Blow
- AI bubble a "key downside risk" to U.S. economy, report warns
- Tariffs, AI boom could test global growth's resilience, OECD says
- OECD warns tariffs, AI will test resilience of the global economy
- YSD Encourages Continuing AI Training For Staff Members
- Opinion | Artificial Intelligence Threatens Student Learning ... And More
- Why AI is driving an energy boom: Missouri S&T expert explains
- What CEOs say about AI and what they mean about layoffs and job cuts: Goldman Sachs peels the onion
- How AI-Powered Call Screening Is Killing The Sales Cold Call
- Intellistake Strengthens AI Infrastructure Platform With Entry Into Space-Based Data Centers
- OpenAI’s Sam Altman declares ‘code red’ after rivals make advances
- The latest 'evil AI' game is bogged down by human error
- USA-Saudi Arabia Joint Statement – The Strategic Artificial Intelligence Partnership
- Check Point Software (NASDAQ: CHKP) to host 90-minute global webinar on securing AI at scale
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