This paper examines whether local investments in artificial intelligence (AI) improve subnational borrowing terms in an international setting. Building on U.S. evidence that areas with greater AI diffusion experience lower municipal bond yields and improved local fiscal capacity, we extend the analysis to five OECD countries: Belgium, Canada, Germany, Spain and Sweden. Vacancy data from Lightcast are used to measure the AI share of job postings at comparable subnational geographies and to link these measures to municipal and regional bond outcomes […]