The World Trade Organization has identified prolonged high oil prices resulting from Middle East conflict as a potential threat to the artificial intelligence boom, according to the organization's chief economist.

The warning comes as part of the WTO's latest Global Trade Outlook report, which highlights the ongoing war and its impact on energy and fertilizer costs as the primary risk to the global economy. The assessment suggests that sustained elevated energy prices could constrain the rapid expansion of AI technologies and related industries.

The AI sector has experienced significant growth in recent years, with companies and governments investing heavily in artificial intelligence infrastructure and development. However, this expansion requires substantial energy resources to power data centers, training facilities, and computing operations that support AI systems.

Energy costs represent a significant operational expense for AI companies and cloud computing providers, who rely on electricity to run massive server farms and processing centers. Any sustained increase in energy prices could potentially impact the profitability and scalability of AI operations.

The WTO's assessment reflects broader concerns about how geopolitical tensions and their economic consequences could affect emerging technology sectors. The organization's report emphasizes that energy and fertilizer price volatility stemming from Middle East conflicts poses the most significant challenge to global economic stability in the current environment.