BlackRock and Bank of America Reject AI Bubble Claims

Financial leaders from BlackRock and Bank of America have dismissed claims that the artificial intelligence boom is a speculative bubble, attributing the current growth to tangible corporate investment and productivity gains. BlackRock estimates global corporate spending on AI will reach between $5 trillion and $8 trillion by 2030, suggesting this build-out could consistently push US GDP growth above the 2% trend.

While rejecting the bubble narrative, the firms identified distinct risks. BlackRock warned that data centers could consume as much as 20% of US electricity by the end of the decade. Bank of America noted that the market may enter an air pocket, a period where massive capital expenditures temporarily outpace revenue growth and monetization, which could unsettle investors in the short term.

Jean Boivin of BlackRock stated that the scale of the build-out is unprecedented and argued that framing the current state as a bubble is not useful for investors. Savita Subramanian of Bank of America agreed that the current phase is not a bubble, though she cautioned that AI leadership will not continue unfettered.