AI-Driven Growth Leaves US Economy's Weak Spots Behind

The US economy is experiencing growth driven by the insular boom in AI investment, but this trend risks leaving behind American workers and businesses that are not part of it.

A recent hike in interest rates by the Federal Reserve has raised concerns that tackling AI-related inflation could make things worse for the non-AI economy.

Construction spending growth has fallen to a near standstill, except for the building of AI data centers and electricity plants to power them. This suggests that the benefits of the AI boom are being concentrated in specific areas, while other sectors suffer.