Goldman Sachs Chief Economist Jan Hatzius warns: The AI investment frenzy won't last forever.
Goldman Sachs Chief Economist Jan Hatzius stated at the firm's Communacopia & Tech conference that aggressive spending in artificial intelligence (AI) will not last forever. He believes that even if AI investments are productive, a slowdown will eventually occur as new technologies transition from an investment phase to a utilization phase, at which point investment volumes will decrease. Hatzius also noted that the possibility of some AI investments ultimately proving inefficient cannot be ruled out. PwC's latest report predicts that global AI infrastructure investment will reach a record $31.6 trillion by 2050, with annual data center capital expenditure increasing from approximately $800 billion in 2026 to $1.8 trillion in 2050.
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