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Richard Baldwin, industry influencer, observes a shift in aggregate demand trends as data centres now surpass single family home construction in the U.S.
Baldwin highlights that the high level of the SP500 is increasingly reliant on excitement around artificial intelligence. He also notes that about half of aggregate consumption demand is tied to the strength of the SP500, and that aggregate investment demand has become more connected to this dynamic.
Baldwin has previously flagged concerns that AI-powered hacking could present new security challenges for banks, as criminals adopt more advanced tools. In a recent note, he outlined risks from emerging technology to established financial institutions. Further details on his analysis are available in his article on AI-driven hacking threats.