BlackRock CEO Larry Fink thinks there is no AI bubble
What's the story
Larry Fink, the Chairman and CEO of BlackRock, has dismissed concerns about an artificial intelligence (AI) investment bubble. Speaking at a Jio-BlackRock event with Mukesh Ambani, Fink said fears of over-investment are misplaced. He emphasized that not investing could pose greater risks in the global tech race. "I believe the greatest risk we have is if we don't invest and continue to invest," he said.
Market impact
Business failures likely during transition to new technologies
Fink acknowledged that the growth of AI would not benefit every company equally. He said business failures are likely as industries adjust to new technologies. "That doesn't mean we're not going to have some bankruptcies or some failures. That's capitalism," he said, adding that there will be both big successes and failures in this process.
Technological disruption
AI's disruptive potential and energy advancements
Fink highlighted the dual nature of emerging technologies like AI, which can pose threats and create opportunities for businesses. "AI is among the most topical conversations we're having now because it is disruptive. It's going to be disruptive for some industries, but it's also going to be very advancing," he said. He also noted that new technological tools could help develop cheaper and more efficient energy sources over time.
Economic success
Ensuring equitable benefits from new technology
Fink stressed the importance of ensuring that the benefits of new technology are widely shared. "The key for AI to be really successful in every society is to make sure that AI broadens economic success, and it doesn't narrow economic success," he said. He also pointed out that in its early stages, some countries may benefit more than others from these advancements.
Productivity boost
Technology's role in addressing challenges of aging populations
Fink said technology could help countries with aging populations maintain economic growth. He cited South Korea, Japan, and Italy as examples where declining populations are raising concerns about future productivity. "Can AI increase productivity? And if so, can we increase GDP with a diminishing population? I believe the answer is going to be profoundly yes," he said.
Tech adoption
India's rapid technological adoption and potential for job creation
Fink described India as being well-placed to benefit from the technological shifts due to its large population and openness to adopting new systems. "India is at the nexus of it," he said. He cited India's quick adoption of digital payment systems as an example of how quickly the country can adapt to change, which could help manage job creation and disruption caused by new technologies.