Is AI already a measurable productivity force — or is the bubble narrative just noise?
Hani Redha of PineBridge makes the case that AI has moved from market theme to economic reality, and explains why he remains sceptical of bubble talk.
What began as a thematic growth driver is now transitioning into a measurable, economy-wide positive productivity shock, with meaningful implications for margins, investment, and asset prices.
At the core is the continued rapid progression of AI capabilities. Model development remains on an exponential trajectory, with recent benchmarks suggesting progress is running ahead of expected scaling trends. There are no clear signs of diminishing returns, reinforcing continued investment by the hyperscalers. For companies building foundational models, the message remains clear: incremental scale continues to deliver improved outcomes. We continue to monitor for signs of a deceleration, which would mark an important inflection point, but see no red flags yet.
Read the full article PineBridge Investments today.
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