AI spend is staggering and will persist, says Wells Fargo's Tom Porcelli

• AI spending is 'staggering' and will persist, adding close to a percentage point to economic growth.
• The aggregate impact of AI on jobs is 'not existent' currently, though some companies may be cutting jobs and college entrants face harder job searches.
• The AI investment cycle has room to run, but AI is currently proving to be inflationary due to rising compute costs.

Wells Fargo Chief Economist Tom Porcelli discusses the economic impact of AI, noting that AI spending is staggering and will persist, adding meaningfully to the economy. While some job disruption may occur, especially for college entrants, the overall labor market is dynamic. AI is currently inflationary due to rising compute costs, but the investment cycle is expected to continue.