A growing warning from top economists suggests that the current Artificial Intelligence (AI) boom is unsustainable. According to a research note by Deutsche Bank, tech spending on AI is becoming too massive and may eventually “remain parabolic” or decline.
The bank’s report states that if tech spending doesn’t slow down, it will keep the US economy out of recession this year. However, another study by Bain & Co. estimates an $800 billion shortfall in revenue needed to support the demand for AI computing power.
These warnings come as top economists are divided on whether the current AI boom will continue or collapse. Some, like Goldman Sachs, believe that productivity gains from AI will boost GDP significantly over the next few years and into the long run. However, others argue that there’s an “extreme degree of concentration” in the stock market, with only a few tech stocks driving the gains.
The market has been heavily influenced by the Magnificent 7 tech stocks, which have seen significant spending on AI and revenue generated from it. But with no consensus on Wall Street regarding AI’s longevity, investors are left to wonder if this boom is sustainable or just a temporary bubble waiting to burst.
Source: https://fortune.com/2025/09/23/ai-boom-unsustainable-tech-spending-parabolic-deutsche-bank