Quantifying the AI boom crowding-out effect

Goldman Sachs economists have found that while the current AI boom is consuming significant resources that could otherwise be used for other tech projects and construction, the "crowding-out" effect is smaller than expected. This means that the investment surge in AI, while it does displace some other tech investments and raises borrowing costs for companies, doesn't completely overshadow other sectors. This insight is crucial for understanding the balance between the rapid growth of AI and its impact on the broader tech and financial landscape.