AI Spend Has Been 'Critical' for US Economy, Says Torsten Slok

The US economy maintains strong growth momentum driven by significant AI-related investment and government fiscal policy, which effectively counterbalance interest-rate-sensitive sectors like housing and autos. While market participants are currently overexposed to AI, diversifying into non-AI assets—such as commodities or value-oriented equities—is essential for balanced portfolios. Research from economists Owen Zidar and Eric Zwick reveals that the bulk of American wealth resides with private business owners rather than tech or Wall Street, providing a more granular view of consumer spending power. Meanwhile, Europe navigates political fragmentation and fiscal strain, with future growth prospects increasingly tied to defense and infrastructure spending rather than technological innovation. Torsten Slok of Apollo Global Management emphasizes that the sustainability of current economic performance relies heavily on the continued successful deployment and productivity gains of artificial intelligence.