Beware AI euphoria

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{"text":[[{"start":null,"text":"<div class=\"pic\"><picture><source media=\"screen and (max-width: 490px)\" srcset=\"https://thumbor.ftacademy.cn/unsafe/980x0/https://d1e00ek4ebabms.cloudfront.net/production/4bd923b0-8179-4df9-b56b-3a9d61e5ce54.jpg\"><img src=\"https://thumbor.ftacademy.cn/unsafe/1920x0/https://d1e00ek4ebabms.cloudfront.net/production/eab4f53b-2a15-4eb1-8b5c-37907c7ac422.jpg\"></picture></div>"}],[{"start":7.37,"text":"Another week, another record high in US equity markets. "},{"start":11.149000000000001,"text":"Last week’s jump was triggered by the Federal Reserve’s signal that investors can look forward to more interest rate cuts this year. "},{"start":17.317,"text":"But deeper market bullishness is built on two things: the cash reserves of the tech giants that now dominate the markets, and belief in their ability to monetise artificial intelligence. "}],[{"start":27.82,"text":"AI will “change the world”, we are told. "},{"start":30.749,"text":"It will radically increase productivity (albeit by disrupting millions of jobs). "},{"start":35.379,"text":"It will create a huge new wealth pie for the world to share. "},{"start":38.609,"text":"And, according to a breathless ARK Invest report that last week predicted a $40tn boost to global gross domestic product from AI by 2030, it will “transform every sector, impact every business, and catalyze every innovation platform”. "}],[{"start":53.46,"text":"It’s the euphoria and sense of inevitability in this straightforward narrative that makes me nervous. "},{"start":58.602000000000004,"text":"Even if you believe AI will be today’s equivalent of electricity or the internet, we are at the very early stages of a highly complex multi-decade transformation that is by no means a done deal. "},{"start":68.194,"text":"Yet valuations are pricing in the entire sea change, and then some. "},{"start":72.162,"text":"A February report by Currency Research Associates