The Impact of AI on the Economy

The economy is currently divided between the AI sector and non-AI sectors, with the former exhibiting significant growth. Over the past three years, capital expenditure (CapEx) in the AI sector has surged by around 80%, while investment in non-AI technology has lagged behind, growing at only 2% annually due to higher interest rates and other macroeconomic pressures. However, the trend is beginning to shift as economic conditions improve, leading to a reversal of headwinds faced by the non-AI technology market. As interest rates stabilize and AI applications start to gain traction across industries, many believe that this segment will experience a resurgence and accelerated growth.