UBS CEO Warns US Politics May Slow AI Buildout

UBS CEO Sergio Ermotti stated that political developments and midterm elections in the United States are creating uncertainties that may trigger a slowdown in the buildout of AI capacity, particularly regarding data center infrastructure. While he maintains that the long-term economic value of the AI cycle will be significant, Ermotti noted that investors are currently questioning valuations and the timing of benefit delivery.

Internally, Ermotti expects AI to increase efficiency and reduce staffing requirements for certain tasks, though he warned the technology increases cyber risks. He also expressed concern regarding the risk of financial contagion in Europe, suggesting that these risks are not being addressed with sufficient speed. Additionally, he noted that sticky inflation may force central banks to maintain higher interest rates for longer than previously expected.