Artificial intelligence single-handly boosted the economy in 2025. AI stocks including Google, Nvidia, and CoreWeave were just a few stocks that ended up booming in 2025 due to AI. As 2026 comes around people are looking for the next stock to make them rich and the Deutsche Bank warns the public that the AI honeymoon will be coming to an end in.
A big reason why is due to the fact that AI has not proved to be effectivly cheaper than human workers in many work settings. This is leading to a lack of ROI and cause stockholders to be cautious where they are putting their money. It is still very possible that AI will take over some jobs in the future but the rapid change that was expected has not happened yet leading people to believe it still needs some time.
Next, AI data centers are already at capacity and some companies are scrambling just to find the money to support spending that is over 15 billion. Investors are also seeing the lack of infastutcure to support the growth of AI currently which could send some companies back to square one.
Finally, if a pullback of investment in AI occurs some analysts warn that it could trigger financial market correction that would drop global growth. If this happens it opens that door for competitors like China to get ahead of the United States in the AI race which would prove detrimental to the U.S. in the future.
I am curious if this will force companies to focus less on the hype of AI and more on practical and sustainable AI that creates value over time.
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