How is AI reshaping the economy?

Big Tech is now 'propping up the US economy'

Illustration of a robotic arm counting on an abacus
Big Tech is a hedge against 'decelerating' conditions
(Image credit: Illustration by Stephen Kelly / Shutterstock / Getty Images)

Artificial intelligence is reshaping the American economy, but something more is happening: Increasingly, it is the economy. That might not be a good thing.

"Big Tech is becoming an even more important part of American prosperity," said The Washington Post. Google, Meta, Amazon and Microsoft are collectively "on track to spend more than $350 billion" building AI centers. That spending is large enough to be a "countervailing force" to a U.S. economy that appears to be "decelerating" under the weight of President Donald Trump's tariff and immigration policies. But that growth has also raised concerns among economists who believe that a healthy economy has a diverse range of activities. The AI sector "seems to be carrying the economy on its back now," said Callie Cox of Ritholtz Wealth Management.

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.