Companies are entering a 'danger zone' due to the colossal amounts of money being invested in the development of artificial intelligence (AI). The Wall Street Journal (WSJ) reported this on August 1.
According to the newspaper, if productivity growth does not keep pace with massive investments, AI could turn out to be a bubble. Consulting firm McKinsey & Company estimates that global spending on data center construction could reach $7 trillion by 2030. Such investments could seriously damage the economy if the results of technology implementation do not justify the costs.
It is noted that a collapse in the AI sector could strike the entire global financial system. The newspaper points out that sooner or later a massive crash will occur, dragging the entire market down.
Currently, the pullback in stock prices of companies related to AI technologies is almost fully offset by growth in other sectors of the economy. Nevertheless, analysts warn of long-term risks due to overheated interest in the industry.
Bloomberg reported on July 19 that one of the main threats to modern civilization from the rapid development of AI could be not the emergence of 'thinking machines' but the destruction of the income tax system on which most states' budgets are based. As AI begins to displace people from high-paying professions, states risk facing a simultaneous decline in tax revenues and an increase in spending on unemployment benefits, retraining, and social support.