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Why investors might have to wait for AI success

BlackRock has warned of the long gap between previous technical developments and subsequent economic growth
July 16, 2024 and Alex Hamer
  • BlackRock flags years or more of lag between AI spending and broader economic benefits
  • Energy capacity and other headwinds could slow build-out of AI infrastructure

The rise of generative artificial intelligence (AI) could be a fundamental technological shift, but for investors the question is when all that promise hits the bottom lines of companies not called Nvidia (US:NVDA)

BlackRock’s Investment Institute (BII) says the next phase of development, phase two, which it calls the broadening of AI investment, will take time once phase one, the current ‘buildout’ stage, is over. 

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