World Bank President Ajay Banga said on Tuesday that capital remains available, even as some worry that artificial intelligence could drive interest rates higher. Speaking in an interview on CNBC's "Squawk Box," Banga described the availability of funds as "not really an issue."
To illustrate the point, Banga said the World Bank mobilized $112 billion last year. That figure is around three times the amount recorded three years earlier.
He acknowledged that some investors may be uneasy about circular financing and about the business model tied to AI. Banga said, however, that emerging markets are not facing the same hesitancy, because investment there tends to focus on infrastructure such as bridges and roads.
According to Banga, these countries also tend to look at smaller-scale applications of AI. He said developed counterparts, by contrast, seek funding for large use cases, which he characterized as the "exact opposite" need.
Banga also noted that the private capital the World Bank oversees does not go to governments. That structure, he said, helps the organization steer clear of fears about looming debt crises and the pressures of rising bond yields in some countries.
Looking ahead, Banga remained optimistic about the technology. "In general, I still believe that AI is going to be transformative and profitable," he said. "But everybody sees bumps in the road from here to there, and no one knows when the next bump will come."
His remarks arrive ahead of a series of interest rate decisions from central banks around the world. Economists and monetary policymakers globally have been trying to gauge how widespread adoption of AI affects demand for capital and employment.
The World Bank was founded in 1944 and aims to end poverty and support economic prosperity through global partnerships and funding. Before taking the top job at the institution, Banga served as vice chair at General Atlantic and as CEO of Mastercard.
