AI boom at risk as oil prices surge: WTO

The global AI boom could face a slowdown as rising oil prices driven by the Middle East conflict begin to strain energy-intensive industries, according to the World Trade Organization.

This issue was raised by Robert Staiger, who said that the rapid development of AI depends on energy costs. If energy costs remain high, it will "crimp" investment in AI as it needs "massive amounts of computing power and electricity."

AI systems, data centers, and chip production require a huge amount of energy. This makes it more vulnerable to high oil and energy costs. The WTO said that if high oil and energy costs persist, it will directly affect investment in AI and data centers.

The warning is timely in that it coincides with a period in which AI has dominated economic activities. In the region of North America, the WTO reports that 70% of investment in 2025 is AI-related goods. This is a clear indication of the importance of the technology in the world economy.

However, Staiger noted that there is a lack of clarity regarding the returns on investment in AI in the long term. Investment in the technology is dominated by a few large corporations.

In addition to the risks associated with AI, the WTO noted a number of risks affecting global trade. While goods trade grew in 2025 by 4.6%, it is set to decline sharply to 1.9% this year. A sustained increase in energy prices is set to reduce the growth further.

An increase in oil and fertilizer prices is set to affect food supplies, especially considering the importance of the Gulf region in food exports. This is set to worsen the situation in food security.