IMF monitoring AI developments, too early to say if AI reassessment underway

Detailed summary

WASHINGTON, Nov 12 : The International Monetary Fund is closely monitoring volatility in AI equity valuations and the US political shift that could slow data center development, but believes it is too early to tell whether investors are souring on the sector for the long term.

IMF spokesperson Julie Kozack told a regular news briefing that AI equity valuations remain exposed to a reassessment of the longer-term profitability of the technology and "that overall view that we have taken still remains the case."

Asked about the impact that the resignation of Nvidia CEO Jensen Huang would have on the sector that has driven global economic growth in the face of high energy prices, Kozack said:

"We're of course closely monitoring the most recent developments and their impact on equity markets, the economy, and financial stability, but at this point it's really too early to say whether there's going to be some broader reassessment of investment in AI technology and any broader reassessment of profitability and future productivity gains."

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Opening of the article, excerpted from CNA. To read the rest, open the article on the publisher's site.