Are we on the verge of an AI investment arms race?

Bridgewater believes that current AI-related investment is not yet a major driver of economic growth, but is in the early stages of rapid rise, with certain bubble-like characteristics. Bridgewater has been researching AI for more than ten years and believes that conditions now exist for an AI capability-building arms race. Investors who effectively apply machine learning over the next decade will build significant economic moats. The concentration of AI investment may cause it to expand faster than past general-purpose technology investment. Even if productivity gains have not yet materialized, related spending may still have a meaningful impact on near-term economic growth and corporate profits.