Morgan Stanley questions AI’s impact on US economic elasticity
Morgan Stanley's research raises concerns about the impact of AI investments on the US economy's responsiveness to market forces. The bank projects AI infrastructure spending to reach $800 billion in 2026, with a further increase expected in 2027. This trend suggests a shift from consumer-driven growth to a focus on physical infrastructure investment, potentially limiting the economy's elasticity.
- ▪Morgan Stanley questions whether AI investments have made the US economy less elastic.
- ▪The bank estimates AI infrastructure capital expenditure will hit $800 billion in 2026 and $1.16 trillion in 2027.
- ▪A significant portion of AI spending is directed towards overseas suppliers, reducing domestic economic benefits.
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Morgan Stanley questions whether AI has made the US economy less responsive to market forces The bank's research suggests nearly $800 billion in AI capital spending is plowing ahead regardless of costs, interest rates, or supply chain disruptions, fundamentally changing how the economy absorbs shocks. Share Add us on Google by Editorial Team May. 25, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); When companies keep spending…
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