BCA Research has raised concerns that artificial intelligence might destabilize domestic politics and international security, highlighting recent developments during the Trump administration.

In a note released after Trump signed executive orders to boost U.S. AI innovation and visited the Federal Reserve to advocate for interest rate cuts, BCA’s Chief Geopolitical Strategist Matt Gertken stated that these events “signal deeper questions about political and geopolitical shifts amid the rapid growth of AI.”

Gertken emphasized, “Artificial intelligence will destabilize domestic politics and international security.” He suggested that the swift advancement of AI technology could create divisions among political factions domestically and exacerbate distrust among global powers.

He warned, “Domestic political instability will continue to be a challenge as we move forward with AI.” Gertken predicted that the U.S. might respond by increasing corporate taxes and implementing “more creative fiscal policies,” particularly aimed at the tech sector.

On the international stage, he cautioned that military advancements driven by AI could “heighten strategic distrust,” and the technology’s ability to spread information quickly may not lead to better diplomatic relationships. “The dissemination of ideas will not necessarily foster trust,” he noted.

BCA indicated that these factors could create a volatile environment for markets and policymakers, with AI-driven disruptions potentially accelerating changes in monetary and fiscal policy frameworks.

Gertken concluded that the AI revolution could usher in a period of global instability, impacting both economic policy and geopolitical risk.