Bloomberg Surveillance · Friday, September 25, 2026
Michael Gapin of Morgan Stanley suggested that a slowdown in the growth rate of AI spending could become a significant economic factor. He noted that while AI spending has been a driver of economic resilience, historical investment booms show a tendency for a boom-bust cycle.
“Somewhere in here, in 2027, 2028, the growth rate of that spending will be slowing. So what's more important, the level of spending or the growth rate?”
“All of these narratives have a boom-bust story to it, that there's a period where you get tremendous acceleration and optimism, capital spending and borrowing, and it creates kind of a very resilient economy. At some point, that spending has to slow.”