The AI Economy

Artificial Intelligence Emerges as the Primary Driver Supporting the Economy

Despite recent turmoil in the bond market, both the stock market and the broader economy appear to be well-positioned. This is due to the increasing oil prices and the war in Iran, which have led to sharply increased interest rates. However, the artificial intelligence industry, a powerful yet fragile force supporting the stock and economy, has become crucial. The iShares U.S. Technology ETF, a proxy for A.I.-led tech stocks, returned 33.7 percent for this calendar year through Thursday, compared to 4.1 percent for the ProShares S&P 500 Ex-Technology ETF. Moody's Analytics' chief economist, Mark Zandi, estimated that 0.6 to 0.7 percentage points of the economy’s inflation-adjusted growth this year came from the A.IAI. boom. Concerns about the dangers of the technology have also been raised, with some suggesting it could lead to a crash in the stock markets and recession. However it wouldn't necessarily take a major new A.AI. safety threat or new regulations to halt the boom.

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