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.
