More than 200 economists and artificial intelligence (AI) experts have signed an open letter urging governments and institutions to take immediate steps to address the growing economic impact of AI, warning that the technology could transform the global economy while displacing large numbers of workers.

The statement, released on Monday, has been signed by leading economists, computer scientists and executives from major technology companies, including Anthropic, Google and OpenAI.

The letter, organised by Stanford University's Digital Economy Lab, says AI could become "radically more powerful" over the next decade, bringing economic changes on a scale greater than the Industrial Revolution but happening much more quickly.

According to the signatories, AI has the potential to significantly improve living standards but also poses serious risks, including widespread job losses.

The four-sentence letter calls on policymakers and institutions to act now by creating the right incentives, safeguards and institutions to ensure AI develops in ways that support people and benefit society rather than replace human workers.

Stanford's Digital Economy Lab said the letter has so far been endorsed by more than 200 economists and AI researchers, including 16 Nobel Prize winners.

Among the signatories is AI pioneer and computer scientist Yoshua Bengio, who said the rapid pace of AI development makes it highly likely that the technology will dramatically reshape economies.

"We must make deliberate and democratic decisions about how AI is developed and used, instead of leaving its future entirely to market forces and risking that many people are left behind," said Bengio, a professor at the University of Montreal.