On October 15, Ted Pick, the CEO of Morgan Stanley, remarked on Wednesday that the development of artificial intelligence (AI) is likely to encounter phases characterized by bottlenecks and potential overbuilding. Nevertheless, he emphasized that substantial investments in this field will persist on a large scale in the years ahead. Pick suggested that banks should adopt a flexible approach to AI capital expenditures, decelerating investments when the market progresses too rapidly and accelerating them when the need arises.

He highlighted the magnitude of these investments, noting that the economic growth of both the United States and the global economy is, to a certain extent, propelled by the cycle of AI capital expenditure. Pick projected that annual spending in the AI sector will hover around the $1 trillion mark over the next 5 to 10 years.

Furthermore, Jeremy Barnum, the Chief Financial Officer of JPMorgan Chase, also commented on Tuesday that due to the continuous and escalating capital expenditure demands stemming from AI infrastructure construction, JPMorgan Chase is vigilantly monitoring its risk exposure within the AI sector.