AI's boost to the U.S. economy is nearing its peak, Goldman says, as Apollo finds ‘zero financial payoff’ outside Big Tech
The AI boom has been propping up U.S. growth for more than a year. But Goldman Sachs chief economist Jan Hatzius says that support is about to crest, and Apollo chief economist Torsten Slok says the payoff that was supposed to replace it hasn’t shown up.
TL;DR
- The AI boom's support for U.S. growth is expected to peak soon, with potential impacts on capital spending and consumer spending.
- Outside of the tech sector, AI has delivered no significant financial payoff to corporate America, leading some companies to view AI spending as a cost center.
- Concerns exist about the sustainability of AI investment and its potential to cause labor market disruption.
- Economists differ on whether AI will ultimately translate into widespread productivity gains and improved corporate profits.
- Factors such as rising energy prices and long-term interest rates are also posing downward risks to U.S. growth.