This summer’s falls in the share prices of companies involved in producing AI chips have prompted some to question whether the AI revolution will be quite the game-changer it has been built up to be. But it is important to separate the impact of AI on financial markets from the impact on the economy and while the hype around new technologies makes them prone to bubble behaviour, this shouldn’t detract from the potential economic gains. Indeed, we remain optimistic about the ultimate economic benefits of the AI revolution and have always been clear that it will take several years for these to come through.
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