The true cost and future of AI

The article "The true cost and future of AI" highlights that while artificial intelligence marks a transformative technological shift comparable to the internet, its broader economic, social, and environmental costs are substantial and multifaceted. Drawing on data from leading institutions, the report reveals that despite projected global AI spending surpassing $2 trillion by 2026, AI’s direct contribution to U.S. GDP growth is negligible once imports are considered. Major tech companies plan massive investments in AI infrastructure, yet many executives report minimal operational impact. Labor markets face significant disruption, with an estimated 92 million jobs at risk by 2030 and notable employment declines among young workers in AI-exposed roles. Additionally, AI’s expansion drives up electricity prices, inflates e-commerce costs, and intensifies competition for critical resources like phosphates, affecting food affordability. The semiconductor supply chain is under severe strain, experiencing the largest supply-demand imbalance in decades, leading to soaring DRAM prices and a shrinking smartphone market, particularly in lower-cost segments