Trillions of dollars have been allocated for investment in artificial intelligence over the next five years, based on the belief that the US economy, and perhaps the global economy, is entering a period of profound transformation. Optimists are convinced that this time is different because artificial intelligence represents a complete economic transformation, not just a story about valuations and stocks. However, skeptics point to the risks of an overheated economy and the potential turmoil that may follow. Since the emergence of ChatGPT three years ago, investors have been divided between those enthusiastic about the AI wave and those fearful of a new "tech bubble." Yet, the skeptics have reasons for their caution: will the returns justify this spending? The stakes here are not small.
