The artificial intelligence industry is attracting unprecedented levels of investment as companies and investors race to expand AI infrastructure and develop new applications.

Global spending on data centres alone could exceed 30 trillion dollars by 2050, according to a projection by PwC. Major AI companies are also planning large investments, raising questions about whether future revenues and productivity gains will be sufficient to support the scale of current spending.

A study by Bain and Company estimated that AI infrastructure companies and major technology firms could need more than 4.2 trillion dollars in additional revenue over the next five years to support the ongoing expansion. The study said entirely new markets may need to emerge to bridge the funding gap.

Economists have noted that the productivity benefits of major technological advances often take years to become visible across the wider economy. While AI is already changing workplaces and affecting some early career hiring patterns, the broader economic impact remains uncertain.

AI companies and technology executives continue to point to the potential for rapid advances as systems become more capable and potentially improve their own performance. At the same time, the large scale investment in infrastructure means companies must generate sufficient returns to justify the spending.

Analysts say that even if the transformation takes longer than expected, the infrastructure being built today could continue to support economic benefits as AI technology develops and becomes more widely used.