AI Can Transform the Economy and Still Be a Bubble: Bill Dudley

What’s the most likely outcome of the artificial intelligence boom? Economic transformation or huge losses for investors?

Yes.

How AI evolves is perhaps the biggest question looming over the future of both the stock market and the broader economy. The “magnificent seven” tech companies, all with big bets on AI, account for more than one third of the S&P 500 Index’s market capitalization, up from about a fifth at the end of 2022. Investment is ramping up fast: Over the past year, spending on information processing equipment and software has risen by about 20% in real terms. Together with the ...