In a November 10 report, Capital Economics economist Stephen Brown noted that even if the AI investment boom reverses, it is unlikely to trigger a US recession. Most of the investment flows into large-scale projects that take years to complete. If demand growth for AI services from businesses and households does not slow significantly, Capital Economics believes most developers will see these projects through, further reducing the risk of a sudden decline in employment or GDP. Moreover, most current tangible investment consists of imports, and tech-related employment has not surged—meaning companies anticipate fewer layoffs.
