Massive AI spending has a ‘crowding out’ effect that could slow other sectors, top economist says

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• Hundreds of billions of dollars in AI investments are pouring into the economy annually, helping fuel GDP growth but with some negative implications for other sectors, according to Neil Dutta, head of economic research at Renaissance Macro Research. For example, the rush to build data centers raises concerns that it could make housing construction harder.

So much money is chasing the artificial intelligence boom that it has an outsize effect on economic growth, but it could also be having negative side effects on other sectors, according to Neil Dutta, head of economic research at Renaissance Macro Research.