There's more to go in capex and upside for AI, says UBS' Alli McCartney

Group 1 - Current infrastructure spending is significantly lower than historical averages, with only slightly less than 1% of GDP being spent compared to the historical range of 2% to 5% [2] - There is a belief that the current technological advancements, particularly in AI, could lead to a transformational tech trade, which may involve significant creative destruction [6][11] - The economic landscape is characterized as K-shaped, where wealth inequality is increasing, with the rich getting richer while lower-level employees face job insecurity due to technological advancements [10][12] Group 2 - The Federal Reserve's approach may need to adapt to the changing labor market dynamics influenced by technology, immigration, and an aging population [13] - There is a recognition that the current economic growth is driven by supply-side factors, which may require a different perspective from traditional demand-side economic theories [9] - The potential for a new infrastructure build driven by technological advancements is seen as a critical factor for future economic growth [4][5]