Former SEC chief expects the AI spending boom to cool

Gary Gensler, the former chair of the U.S. Securities and Exchange Commission, says the current AI spending boom will not last forever. In an interview with Bloomberg Technology, he said he expects some kind of slowdown or reversal within the next 18 to 30 months.

What he said

Gensler points to history. Investment booms like this one, he says, do not continue indefinitely. He did not say the technology itself will fail. His point is about the flood of money going into it, which he expects to cool at some stage.

He also says mounting debt could determine how disruptive the pullback becomes. In plain terms, the more money that has been borrowed to fund the boom, the more painful a slowdown could be. The feed also notes he weighed in on interest rates and monetary policy, but the details were not available.

Who it affects

Anyone who owns tech stocks, or funds that hold them, could see prices swing if spending slows. Business owners who are building around AI tools could also see changes in the pace of new products and in what those tools cost.

What is not known yet

• The full interview was not available, so his reasoning is only partly clear.
• No specific companies, debt figures or price targets were given in the material.
• The 18 to 30 month window is one person's expectation, not a certain date.

What to do

Avoid betting everything on the boom. If you invest, keep your holdings spread out. If you run a business, try AI tools where they clearly save time or money, and keep a backup plan in case prices or services change.