Davos 2026: Gita Gopinath’s Caution On The AI Investment Frenzy

At Davos 2026, Professor at Harvard University, USA Gita Gopinath struck a careful balance on Artificial Intelligence—strongly backing its transformative power while sounding a note of caution on valuations. She said AI is the most powerful technological shift of our lifetimes, capable of lifting productivity and long-term growth. But Gopinath warned that the investment frenzy around AI firms may be running ahead of sustainable profits. With intense global competition, rapidly evolving models, and unclear business models, she questioned whether current valuations can justify massive capital spending. Drawing parallels to past tech cycles, her message was clear: AI is real and here to stay—but markets may be underestimating the risks of a correction.