Introduction: Capital Deployment in Artificial Intelligence

Abstract

The purpose of this study is to evaluate the recent capital deployment in artificial intelligence and the risk it entails to the global economy. The paper began with the recent interest in Artificial Intelligence from investors which has led to massive deployment of capital in the sector. It focuses on the investment gap and the possibility that it has developed a financial bubble and further discusses the mechanics of formation of a bubble. The paper also highlights the energy requirement, and infrastructure needs to support the recent development. Finally, paper discusses the role of sovereign investment and geopolitical aspect of AI and how to mitigate against those emerging risks. The paper concludes with risk management and precautions that can lead to successful AI deployment without risking economic growth around the globe.