Fed’s Barkin warns the AI investment boom cannot grow forever

Richmond Fed President Thomas Barkin says AI spending leans heavily on the broader economy and has natural limits Richmond Fed President Thomas Barkin has a message for anyone treating AI spending as a perpetual motion machine. He said investment in artificial intelligence depends heavily on the economy and cannot grow indefinitely. The core point is simple. AI investment is not floating above the economy on its own momentum. It is tied to the same conditions that drive every other corporate spending decision.

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