Massive US investments in artificial intelligence (AI) could seriously damage the American economy if they fail to deliver the expected productivity growth and turn out to be another financial bubble.
As FinFly.News reports, citing The Wall Street Journal, the United States is approaching a high-risk zone due to the volume of funds being directed toward AI technology development.
According to the publication, about $7 trillion is planned to be spent on data center construction over the next four years. If these investments do not pay off through increased economic efficiency, they could have a significant negative impact on the country's financial system.
The WSJ also notes that the growing dependence of the AI industry on debt financing is an additional risk factor. In the event of a financial bubble, the consequences could affect not only the technology sector but the entire financial system.
The newspaper emphasizes that so far, the decline in stock prices of AI-related companies is offset by gains in other sectors. However, in the long run, a large-scale collapse could spread to the entire stock market.