Economist Kyla Scanlon: the AI bubble will deflate slowly

Economist and bestselling author Kyla Scanlon told the BetaKit Podcast that the AI bubble will most likely deflate gradually rather than burst. She sees the main risk in debt financing: a Brookings paper estimates AI companies need to earn about $10 trillion by 2032, while 75% of S&P 500 companies already trade below their 50-day moving average.

• Scanlon is watching debt markets as AI firms borrow heavily, spreading risk to insurers
• Brookings estimates the AI buildout needs about $10 trillion in revenue by 2032
• 75% of S&P 500 companies sit below their 50-day average as AI names drive the index
• Most likely outcome: empty data centers and defaults for some firms, not an instant collapse