AI Europe
  • Europe
  • Europa
  • Britain
  • France
  • Germany
  • Italy
  • Spain
  • Japan
  • Canada
  • Africa
  • People
  • AI
  • …
    • Afrique
    • Netherlands
    • Poland
  • Agentic AI
  • AGI
  • AI
  • Anthropic
  • Google
  • Microsoft
  • OpenAI
  • xAI
AI Europe
  • Europe
  • Europa
  • Britain
  • France
  • Germany
  • Italy
  • Spain
  • Japan
  • Canada
  • Africa
  • People
  • AI
  • …
    • Afrique
    • Netherlands
    • Poland
Is artificial intelligence distorting the economy? | Guest Columns
AAI

Is artificial intelligence distorting the economy? | Guest Columns

  • May 20, 2026

(TNS) — Artificial intelligence has been a big hit on Wall Street, with the five largest spenders shelling out $800 billion this year in capital spending, but some worry it is distorting the economy.

Morgan Stanley estimates AI spending at $1.1 trillion next year, which would be 3.3% of gross domestic product — that’s more than what’s spent on national defense.

kAm%96 (2== $EC66E y@FC?2= HC:E6D E92E px DA6?5:?8 92D >2D<65 H92E H@F=5 36 “r2E68@CJ d DE@C>D” 7@C E96 64@?@>Ji %2C:77D 2?5 E96 H2C H:E9 xC2?] “q6?62E9 E96 DFC7246[ E9@F89[ 2C6 EH@ 64@?@>:6Di px 2?5 6G6CJE9:?8 6=D6[” E96 ?6HDA2A6C HC@E6]k^Am

kAmpG6C286 p>6C:42?D >2J ?@E 36 D66:?8 36?67:ED @7 E96 px 3@?2?K2] !6CD@?2= 4@?DF>AE:@? 92D 366? >FE65[ H286 8C@HE9 36=@H H@C<6CD’ 6IA64E2E:@?D 2?5 C:D:?8 82D@=:?6 AC:46D 2C6 9:EE:?8 p>6C:42?D’ H2==6ED] w@H6G6C[ px >2J 36 >2<:?8 3FD:?6DD6D 2?5 H@C<6CD >@C6 AC@5F4E:G6[ 2?5 DA6?5:?8 7:=E6CD 5@H? E@ ?@?\E649 ;@3D[ DF49 2D 4@?DECF4E:@? @7 52E2 46?E6CD]k^Am

kAmkDEC@?8m”F6DE:@?i xD 2CE:7:4:2= :?E6==:86?46 5:DE@CE:?8 E96 64@?@>Jnk^DEC@?8mk^Am

kAmkDEC@?8mt4@?@>:DEDk^DEC@?8mk^Am

kAmkDEC@?8m}@C> |:==6C[ &?:G6CD:EJ @7 $2? s:68@k^DEC@?8mk^Am

kAm*t$i px :?G6DE>6?E 😀 4FCC6?E=J 255:?8 23@FE d_ 32D:D A@:?ED — @C _]dT — E@ @FC vs![ H9:=6 EC2?D7@C>:?8 @FC H@C=5] (6 4@?E:?F2==J 7:?5 ?6H FD6D 7@C px[ DF49 2D >65:42= 5:28?@D:D 2?5 677:4:6?E=J >2?28:?8 ?6EH@C62?D E96C6’D ?@ EFC?:?8 324< E@ @=5 >6E9@5D] (:E9 6249 25G2?46>6?E[ ?6H ;@3D 6>6C86[ 4C62E:?8 H:??6CD 2?5 =@D6CD 😕 E96 ;@3 >2C<6E] %96 C62= BF6DE:@? 😀 9@H BF:4<=J E96D6 492?86D H:== E2<6 A=246 2?5 C6D92A6 @FC =:G6D 2?5 :?5FDEC:6D]k^Am

kAmkDEC@?8ms2G:5 t=J[ $2? s:68@ $E2E6 &?:G6CD:EJk^DEC@?8mk^Am

kAm}~i t?@C>@FD px :?G6DE>6?ED 92G6 2=E6C65 E96 C6=2E:G6 :>A@CE2?46 @7 vs! 4@>A@?6?ED 2?5 E96:C 4@?EC:3FE:@? E@ 64@?@>:4 8C@HE9] r@>>@? 64@?@>:4 >6EC:4D @7 8C@HE9 2?5 EC256 ?665 E@ 36 :?E6CAC6E65 H:E9 E96D6 DECF4EFC2= 492?86D 😕 >:?5] p?5[ :E 😀 4C:E:42= E@ 6I2>:?6 E96 D64E@C\=6G6= 56E2:=D @7 64@?@>:4 C6A@CED 2?5 ?@E ;FDE 7@4FD @? 9625=:?6 DE2E:DE:4D] %96D6 56G6=@A>6?ED 5@ ?@E C:D6 E@ 2 =6G6= H96C6 px 42? 36 D2:5 E@ 36 5:DE@CE:?8 E96 64@?@>J]k^Am

kAmkDEC@?8mr2C@=:?6 uC6F?5[ &?:G6CD:EJ @7 r2=:7@C?:2\$2? s:68@ $49@@= @7 v=@32= !@=:4J 2?5 $EC2E68Jk^DEC@?8mk^Am

kAm*t$i px 😀 5:DE@CE:?8 E96 64@?@>J] q642FD6 :E 😀 G:6H65 2D 2 H:??6C\E2<6\2== E649?@=@8J[ 7:C>D 2C6 :?G6DE:?8 2E 6IEC2@C5:?2CJ =6G6=D E@ 2G@:5 72==:?8 369:?5[ 4C@H5:?8 @FE :?G6DE>6?E 😕 9@FD:?8[ >2?F724EFC:?8 2?5 @E96C :?7C2DECF4EFC6] %96 px 3@@> 😀 2=D@ >2D<:?8 H626DD 6=D6H96C6 😕 E96 64@?@>J 3J @77D6EE:?8 D9@42==J D=@H 8C@HE9[ DF49 2D E2C:77D 2?5 @:= AC:46 DA:<6D] px >2J 6G6?EF2==J 56=:G6C =2C86 AC@5F4E:G:EJ 82:?D[ 3FE E96 D42=6 2?5 4@?46?EC2E:@? @7 :?G6DE>6?E C6D6>3=6 A2DE E649 3F33=6D]k^Am

kAmkDEC@?8mz6==J rF??:?892>[ $2? s:68@ x?DE:EFE6 7@C t4@?@>:4 #6D62C49k^DEC@?8mk^Am

kAm*t$i sJ?2>:4 E649?@=@8J 492?86D 5:DCFAE 6DE23=:D965 4@?G6?E:@?2= H2JD @7 5@:?8 E9:?8D] %649?@=@8J 25G2?46>6?E[ E96C67@C6[ C6D92A6D AC6G:@FD 64@?@>:4 24E:G:EJ[ 6DA64:2==J 2D 4@>AFE6CD 2?5 >249:?6D A6C7@C> C6A6E:E:G6 E2D@C6 677:4:6?E=J E92? 9F>2?D] “{F55:E6” C6D:DE2?46 E@ ;@3 5:DA=246>6?E D9@F=5 ?@E 3=@4< E96 AC@46DD @7 “4C62E:G6 56DECF4E:@?” 25G2?4:?8 64@?@>:4 56G6=@A>6?E 2?5 :??@G2E:@?] p44@>A2?J:?8 C:D:4 24E:G:EJ 2EE6>AED E@ 23D@C3 2?5 :?E68C2E6] %96 C6DF=E D9@F=5 36 2 36EE6C @FE4@>6 E92? 367@C6]k^Am

kAmkDEC@?8m#2J |2;@C[ 64@?@>:DEk^DEC@?8mk^Am

kAm*t$i px 😀 5:DE@CE:?8 E96 64@?@>J 2?5 C6G@=FE:@?:K:?8 :E 2E E96 D2>6 E:>6] |2DD:G6 :?G6DE>6?E 😕 E649 :?7C2DECF4EFC6 2?5 49:AD :?7=2E6D vs! 52E2[ >2<:?8 E96 64@?@>J =@@< DEC@?86C E92? :E 😀 3J >2D<:?8 DE28?2E:@? 😕 EC25:E:@?2= D64E@CD =:<6 >2?F724EFC:?8] px :?G6DE>6?ED 2C6 7@C4:?8 4@>A2?:6D E@ 4FE 324< 6>A=@J66D E@ 7F?5 E96D6 :?G6DE>6?ED[ 5:DE@CE:?8 E96 =23@C >2C<6E] px H:== ?@E @?=J 4@?E:?F6 E@ 5:DE@CE E96 EC25:E:@?2= H2J H6 =@@< 2E E96 64@?@>J[ 3FE :E H:== 7F?52>6?E2==J C6HC:E6 9@H H6 =@@< 2E :E]k^Am

kAmkDEC@?8my2>6D w2>:=E@?[ &r $2? s:68@k^DEC@?8mk^Am

kAm}~i px 😀 @?6 @7 E96 >@DE :>A@CE2?E E649?@=@8:42= 25G2?46D @7 >J =:76E:>6] xE H:== 492?86 9@H H6 5@ 6G6CJE9:?8] $@>6 @7 E96 :?G6DE>6?ED A6@A=6 2C6 >2<:?8 H:== A2J @77[ 2?5 D@>6 H:== ?@E[ 3FE E92E 😀 2 ?646DD2CJ A2CE @7 =62C?:?8 9@H E@ FD6 E96 ?6H 42A23:=:E:6D] $EC@?8 px :?G6DE>6?E 😀 96=A:?8 E@ @77D6E ?682E:G6 67764ED @7 E2C:77D 2?5 9:89 @:= AC:46D] %92E’D ?@E 2 5:DE@CE:@?] v6EE:?8 8@@5 ?6HD 2=@?8 H:E9 325 😀 9@H =:76 — 2?5 E96 64@?@>J — 8@6D]k^Am

kAmkDEC@?8mtI64FE:G6Dk^DEC@?8mk^Am

kAmkDEC@?8mq@3 #2F49[ #]p] #2F49 U2>Aj pDD@4:2E6Dk^DEC@?8mk^Am

kAm*t$i px 😀 5:DE@CE:?8 A2CED @7 E96 64@?@>J[ 3FE ?@E 😕 2 325 H2J] %96 82:?D 2C6 7=@H:?8 E@ 2 D>2== 8C@FA @7 =2C86 4@>A2?:6D E92E 42? 277@C5 E96 :?7C2DECF4EFC6[ H9:=6 >@DE 3FD:?6DD6D 2C6 DE:== 7:8FC:?8 @FE 9@H E@ FD6 E96 E649?@=@8J AC@5F4E:G6=J] %9:D 😀 H92E 92AA6?D H:E9 6G6CJ >2;@C A=2E7@C> D9:7E] %96 36?67:ED H:== DAC625[ E96 =23@C >2C<6E H:== 25;FDE[ 2?5 E96 64@?@>J H:== 23D@C3 E96 492?86] %9:D 😀 2 EC2?D:E:@?[ ?@E 2 3F33=6]k^Am

kAmkDEC@?8mpFDE:? }6F564<6C[ (62G6 vC@HE9k^DEC@?8mk^Am

kAm*t$i x?G6DE>6?ED 😕 px 7:C>D 2?5 E96 C6DF=E:?8 3C@256C 677:4:6?4J 82:?D 92G6 364@>6 2 DF3DE2?E:2= 4@>A@?6?E @7 E96 64@?@>J] (96? 2 76H 7:C>D 5C:G6 @FED:K65 42A:E2= DA6?5:?8[ :E 42? >2D< H626DD 6=D6H96C6] (6 2C6 D66:?8 DEC@?8 9625=:?6 8C@HE9 2=@?8D:56 >FE65 H286D 2?5 D@7E6C 4@?DF>AE:@?] ~G6C E:>6[ AC@5F4E:G:EJ 82:?D >2J ;FDE:7J E96 DA6?5:?8[ 3FE 7@C ?@H[ :E 😀 4C62E:?8 2? 64@?@>J H96C6 42A:E2= 😀 23F?52?E[ 3FE 82:?D 2C6 4@?46?EC2E65]k^Am

kAmkDEC@?8mr9C:D ‘2? v@C56C[ $4C:AAD w62=E9k^DEC@?8mk^Am

kAm*t$i pCE:7:4:2= :?E6==:86?46 4@>A2?:6D 2?5 E96 |28?:7:46?E $6G6? 92G6 D:8?:7:42?E=J 5C:G6? E96 A6C7@C>2?46 @7 E96 $U2>Aj! d__ :?56I] %96D6 4@>A2?:6D 92G6 244@F?E65 7@C @G6C 92=7 @7 E96 :?56I’D 82:?D C646?E=J] uC@> 2 E@E2= >2C<6E A6CDA64E:G6[ x’5 46CE2:?=J D2J :E 92D 4C62E65 2 5:DE@CE:@?]k^Am

kAmkDEC@?8my2>:6 |@C282[ uC2?<=:? #6G6C6k^DEC@?8mk^Am

kAm*t$i %96 |28?:7:46?E $6G6? 2C6 4@>AC:D65 @7 E649 4@>A2?:6D 962G:=J :?G6DE65 😕 px[ H:E9 2 4FCC6?E 6DE:>2E65 42A:E2= 6IA6?5:EFC6 @7 Sfad 3:==:@?] %96 |28?:7:46?E $6G6? 5@>:?2E6 >2C<6E C6EFC?D 2?5 2C6 2>@?8 E96 >@DE :?7=F6?E:2= 4@>A2?:6D 😕 E96 DE@4< >2C<6E] %96 :?4C62D:?8 82A 36EH66? E96 8C@H:?8 px >2C<6E 2?5 E96 C6DE @7 E96 64@?@>J 7F6=D 3F33=6 C:D<[ =23@C >2C<6E 5:DCFAE:@?[ 2?5 :?4C62D65 >2C<6E G@=2E:=:EJ[ 2== @7 H9:49 4@F=5 D6G6C6=J :>A24E E96 64@?@>J]k^Am

kAmkDEC@?8m|2C< z6CD6J[ $2? s:68@ r@F?EJ %2IA2J6CD pDD@4]k^DEC@?8mk^Am

kAm*t$i %96C6 😀 ?@ BF6DE:@? E92E px 😀 92G:?8 2 >2DD:G6=J 5:DCFAE:G6 :>A24E @? @FC 64@?@>J] %96 EC:==:@?D @7 5@==2CD 36:?8 :?G6DE65 H:== >2<6 A6@A=6 >@C6 AC@5F4E:G6 3FE 4@F=5 2=D@ C6DF=E 😕 D:8?:7:42?E ;@3 =@DD6D] #646?E DE@4< >2C<6E 82:?D 2C6 5:DAC@A@CE:@?2E6=J 5F6 E@ 2 CF?\FA 😕 px\C6=2E65 DE@42<:?8 E96 >2C<6E @G6C=J C6=:2?E @? 2 92?57F= @7 =2C86 4@>A2?:6D 7@C 8C@HE9 2?5 2=D@ BF:E6 GF=?6C23=6 :7 E96C6 H6C6 2? px 5@H?EFC?]k^Am

kAmkDEC@?8m!9:= q=2:C[ |2?A@H6Ck^DEC@?8mk^Am

kAm}~i }@E J6E[ 3FE :E DFC6 H:== D@@?] |2?J =2J@77D ?@H 2C6 @44FCC:?8 F?56C E96 8F:D6 @7 px H96? C62==J E96J 2C6 6I4FD6D 7@C C:89E\D:K:?8] qFE D6C:@FD 492?86 😀 @? E96 9@C:K@? 2D H6 2== DE2CE E@ :?E68C2E6 px AC@5F4E:G:EJ 7F?4E:@?D :?E@ @FC ?@C>2= H@C<7=@H] x7 J@FC ;@3 42? 36 C6A=2465 FD:?8 px[ E96? DE2CE 86EE:?8 EC2:?:?8 :?E@ J@FC ?6H 42C66C A2E9] |2<6 px J@FC 7C:6?5[ ?@E J@FC 6?6>J]k^Am

kAmkDEC@?8mv2CJ {@?5@?[ {@?5@? |@656C p5G:D@CDk^DEC@?8mk^Am

kAm*t$i w@H6G6C[ x D66 E9:D >@>6?E 2D >@C6 @7 2? :?7=64E:@? A@:?E E92? 2 5:DE@CE:@?] r@CA@C2E6 :?G6DE>6?E 😕 px 92D 8C62E=J :?4C62D65 E96 DE@4< G2=F6 @7 :ED DA@?D@CD[ H9:49 4@F=5 324<7:C6] xE 😀 2=D@ 2 =23@C >2C<6E 5:DCFAE@C] %96C6 H:== 36 3@E9 H:??6CD 2?5 =@D6CD H96? E96 5FDE D6EE=6D] qFE ?6H E649?@=@8:6D 92G6 9:DE@C:42==J D6CG65 @FC 64@?@>J 2?5 @FC ?2E:@? H6==] p?5 x 6IA64E E92E 27E6C 2? 25;FDE>6?E A6C:@5 E92E H:== 36 E96 42D6 282:?]k^Am

  • Tags:
  • AI
  • ai boom
  • anti-capitalism
  • Artificial General Intelligence
  • Artificial Intelligence
  • Asia
  • austin
  • balance sheet
  • big tech
  • branches of science
  • Business
  • business cycle
  • business economics
  • business processes
  • capital (economics)
  • capital expenditure
  • capitalism
  • caroline freund
  • change
  • computer
  • computing
  • Construction
  • consumption (economics)
  • Corporate Finance
  • Corporations
  • creative destruction
  • crowding out (economics)
  • culture
  • Data
  • data center
  • decision making
  • distortion
  • economic bubble
  • economic crises
  • Economic Data
  • economic development
  • economic efficiency
  • Economic events
  • economic globalization
  • economic growth
  • economic ideologies
  • economic indicators
  • economic liberalism
  • economic policy
  • economic problems
  • economic sectors
  • economic stagnation
  • Economics
  • economies
  • economist
  • Economy
  • economy of asia
  • economy of europe
  • economy of north america
  • economy of the united states
  • Employment
  • engineering
  • entities
  • environmental social science
  • Europe
  • factors of production
  • Finance
  • financial crises
  • Financial markets
  • financial problems
  • gasoline
  • global civilization
  • Global Politics
  • globalization
  • Government
  • government finances
  • gross domestic product
  • headline
  • ideologies
  • Income
  • index numbers
  • indicators
  • information age
  • Infrastructure
  • innovation
  • Intelligence
  • interdisciplinary subfields
  • intergovernmental organizations
  • International Business
  • international business organizations
  • international economic organizations
  • international economics
  • international organizations
  • International Relations
  • International Trade
  • international trade organizations
  • investment
  • Iran
  • issues in ethics
  • Labor
  • labor relations
  • labour economics
  • late modern period
  • legal fictions
  • linear theories
  • London
  • luddite
  • Machine
  • macroeconomic indicators
  • macroeconomic policy
  • macroeconomic problems
  • macroeconomics
  • Management
  • manufacturing
  • mark kersey
  • market (economics)
  • market trends
  • marketing
  • mathematical and quantitative methods (economics)
  • medical diagnosis
  • microeconomics
  • modern era
  • monetary economics
  • Money
  • Morgan Stanley
  • nation
  • News
  • Newspaper
  • oil
  • periodization
  • physical sciences
  • policy
  • political economy
  • political ideologies
  • political science
  • Politics
  • price
  • price of oil
  • private sector
  • production (economics)
  • Productivity
  • progress
  • public economics
  • public finance
  • public policy
  • public sphere
  • recessions
  • Resources
  • risk
  • S&P 500
  • s&p global ratings
  • San Diego
  • san diego state university
  • schools of economic thought
  • Science
  • science fiction themes
  • social ideologies
  • social influence
  • social issues
  • social policy
  • social science indices
  • socialism
  • Statistics
  • stock
  • stock market
  • tariff
  • technological change
  • technological unemployment
  • Technology
  • Texas
  • The Wall Street Journal
  • trade
  • uc san diego school of global policy and strategy
  • Unemployment
  • United States
  • University of California
  • volatility (finance)
  • wage
  • wage growth
  • Wall Street
  • waste of resources
  • Wealth
  • work
  • World economy
  • world trade organization
  • world trade organization member economies
AI Europe
www.europesays.com