**AI Surge Lifts U.S. Growth but Job Effects Remain Limited: Bank of America Institute**
Artificial intelligence (AI) has become a powerful engine driving U.S. economic growth this year, according to a new report from the Bank of America Institute, the bank’s think tank. Despite its significant contribution to GDP, the impact of AI on employment remains modest for now.
**AI Fuels Economic Growth**
Investments related to AI—in software, computing, and data infrastructure—are boosting the U.S. GDP. These investments contributed up to 1.3 percentage points to economic growth in the second quarter alone, highlighting AI’s role as a key growth driver in the economy.
**Limited Impact on Employment**
Contrary to common concerns about job losses due to automation, AI has not caused widespread layoffs. Instead, it mainly enhances productivity, particularly in white-collar sectors. Employment in these areas continues to grow alongside increased AI usage, suggesting that AI complements human labor rather than replacing it at this stage.
**Energy Prices and Infrastructure Investment**
The expanded investment in data centers to support AI workloads is driving energy prices higher than the overall inflation rate. This increased demand for energy and utility services may encourage further capital spending in these sectors, especially if supported by favorable tax incentives.
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**Related Stocks to Watch:**
– Microsoft Corporation (MSFT)
– Alphabet Inc. (GOOG)
– NVIDIA Corporation (NVDA)
– Broadcom Inc. (AVGO)
– Tesla, Inc. (TSLA)
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*Stay tuned for more trending news and in-depth analysis on the evolving impact of AI on the economy and job market.*
https://seekingalpha.com/news/4508455-ai-surge-lifts-u-s-growth-but-job-effects-remain-limited-bank-of-america-institute?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news
