The AI Bubble Won't Just Take Down the Stock Market. It Will Hammer the U.S. Economy, Too.

Core Insights - Economists attribute the sustained economic growth to increased spending on artificial intelligence (AI), suggesting that this investment has been crucial in preventing a recession [1] - A slowdown in AI spending could lead to widespread negative effects across various sectors of the economy [1] Economic Impact - The current economic stability is heavily reliant on the momentum generated by AI investments, which have been significant in driving productivity and innovation [1] - If AI spending decreases, it may result in reduced economic activity, potentially leading to job losses and lower consumer spending [1] Sectoral Analysis - Industries heavily invested in AI, such as technology and manufacturing, may face the most immediate impacts if spending slows [1] - The ripple effects of reduced AI investment could extend to other sectors, affecting overall economic growth and stability [1]