Gita Gopinath warns AI spending boom risks investor losses
Business
Harvard professor and former IMF chief economist Gita Gopinath is sounding the alarm on the booming AI industry.
With nearly $1 trillion globally expected to be spent on AI in 2026, she warns that if these huge bets don't pay off, it could mean big losses for investors and the tech world.
AI boosts economies amid geopolitical risks
AI investments are giving a boost to economies like the US South Korea, and Taiwan, thanks to high demand.
But Gita Gopinath points out that ongoing geopolitical tensions, especially in West Asia, are making things uncertain.
She also notes that since major AI players are so connected, trouble for one could quickly ripple out and impact global markets.