JP Morgan Chase & Co. (JPM.US) CEO Jamie Dimon said the spending boom in the AI sector shows no signs of slackening, with investment in the hyperscale data center ecosystem potentially reaching USD1 trillion next year, compared with estimated spending of about USD700 billion this year.
Dimon said the upsurge in spending would help juice economic growth, but could also intensify inflation as companies hire workers, build factories and power plants, and purchase equipment and materials. However, over the longer term, AI may have a deflationary effect.
When asked about returns on AI investments, Dimon said investments cannot always be measured simply by returns, adding that sometimes it is just the price of admission. He noted that improving customer experience is a benefit that is difficult to quantify, and companies may become more efficient in deploying AI over time.
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AASTOCKS Financial News
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