AI companies are spending hundreds of billions of dollars on infrastructure. But can that investment deliver the productivity growth needed to pay off?

Jessica Wachter, Dr. Bruce I. Jacobs Professor in Quantitative Finance at the Wharton School, explains research estimating the scale of the productivity gains implied by today’s AI investment. She discusses why the industry may need a rare productivity boom by 2028, why AI capital spending could approach $1 trillion, and how companies are racing to build data centers and computing capacity.

Wachter also examines what happens if the expected gains do not materialize, including pressure on stock prices and a higher risk of bankruptcy. She considers how AI-driven productivity could affect workers, wages, and the broader economy.

Comments

New This Week

Wharton Accenture Agentic Cost Framework

October 20, 2026 • 11 min read

Available on October 28, 2026.

The Next Phase of AI

The Next Phase of AI

October 20, 2026 • 5 min read

In an excerpt from his new book, ‘Co-Existence,’ Wharton’s Ethan Mollick explores AI’s rapid advances and their inevitable impact on how we work and live.

Nobel Laureate Among 9 New Faculty at Wharton

Nobel Laureate Among 9 New Faculty at Wharton

October 19, 2026 • 3 min read

Here’s a look at Wharton’s newest faculty members and the research that motivates them.