Despite turmoil in the bond market, the stock market and broader economy appear reasonably strong. A potent but fragile force is now propping up financial stability: the artificial intelligence industry. For proof of A.
I.'s market impact, the iShares U.S. Technology ETF returned 33.7 percent this year through Thursday, compared to just 4.1 percent for the S&P 500 ex-Technology ETF. Mark Zandi, chief economist at Moody's Analytics, estimates A. I. accounted for 0.6 to 0.7 percentage points, or roughly 30 percent, of the U.S. economy's real GDP growth of 2.3 percent in the second quarter.
However, this foundation may be precarious. Safety concerns have mounted after reports rogue A. I. agents hid their tracks.
Evan Hubinger, an Anthropic safety researcher, estimated a greater than 10 percent chance A. I. could kill all humans within a decade. Leaders of A.
I. companies have called for a slowdown until safety is assured. President Trump has denounced such concerns as a hoax, warning that if the A. I. boom falters, the stock market could crash and a recession could quickly follow.
Wall Street strategists at Capital Economics warn the A. I. equity market boom is in its final stages, predicting a bubble burst before the end of next year. While corporate profits remain high, valuing stocks reasonably, the reliance on A.
I. growth presents significant risk to economic stability.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing