Capital Economics: An AI Investment Boom Reversal Is Unlikely to Trigger a US Recession

Odaily reports: In a report, Capital Economics economist Stephen Brown stated that even if the AI investment boom reverses, it is unlikely to trigger a US recession. Much of the investment is directed toward large-scale projects that take years to complete. If demand growth for AI services from businesses and households does not slow significantly, Capital Economics believes most developers will complete these projects, further reducing the risk of a sudden decline in employment or GDP. In addition, most tangible investment currently consists of imports, and this time there has been no surge in tech-related employment, meaning companies perceive less need to cut staff.