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Structural Risks Could Test Artificial Intelligence Growth Story
Rising costs, infrastructure limits, and monetisation risks could challenge long-term AI growth prospects.
Artificial intelligence’s rapid expansion faces underlying risks tied to computing costs, energy constraints, data quality, and monetisation challenges, analysts warned. Heavy capital spending, reliance on limited chip supply, and uncertain revenue models could pressure returns. While AI adoption remains strong, investors are reassessing sustainability as regulatory scrutiny rises and expectations moderate, highlighting the need for durable business models beyond hype driven growth cycles.