JPMorgan’s Erdoes says AI isn’t a bubble but rather an opportunity

“AI itself is not a bubble. That’s a crazy concept. .. We are on the precipice of a major, major revolution in a way that companies operate,” Erdoes said. “So if you say to yourself, is AI in a bubble, I feel you have to get very granular on how you’re going to answer that, because in the U.S., we’re starting to gain traction, but we’re nowhere near the ability to have the stuff all to the bottom line.”

“You’re going to see explosive growth on both the revenue and the expense side, and the suppliers of it are going to have to figure out how they make their way through the pipeline,” she added.

Erdoes was not alone in her assessment.

Michael Arougheti, CEO at Ares Management, said the level of investment now is meager compared to the potential that AI holds.

“We have a long way to go in terms of the economic investment relative to the size of the economy,” Arougheti said. “We can’t bring the supply on fast enough to meet the near term demand. So I just feel there’s a lot of hyperbole because the numbers are big and it is that revolutionary.”

Speaking on macro issues, Erdoes said she also doesn’t see a recession on the horizon.

“People have been calling for a recession now for five years, and it just hasn’t come,” she said. Speaking of credit investment, Erdoes added, “If there’s not a recession on the horizon, it’s a great buying opportunity, and you should be leaning in and buying.”




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