The AI investment boom won't last forever, Goldman Sachs chief economist Jan Hatzius warns

Artificial intelligence investment is expected to slow down eventually, according to Goldman Sachs chief economist Jan Hatzius at the firm's Communacopia & Tech conference. While he believes that AI spending could be sustainable and productive, he warns that the build-up phase of new technology often leads to increased investment volume, followed by a period of exploitation where investments decrease.

This could pose challenges for investors who have assumed the boom will continue indefinitely. Global investment in AI infrastructure is projected to reach a record $31.6 trillion by 2050, but the PwC forecast anticipates a rise in annual data center capital expenditures from $800 billion in 2026 to $1.8 trillion in 2050. Companies like Meta, Google, and Microsoft are pouring billions into AI ambitions, with AI infrastructure becoming a defining capital allocation challenge for the next generation.