How the AI backlash could cost investors

AI technologies face potential backlash if perceived as significantly disruptive to society. Such backlash could bring governmental or regulatory restrictions or prohibitions, societal concerns, unrest, or both, materially affecting the ability to develop, deploy, and commercialize AI. Investor meetings in the U.S. have focused on two major concerns: job loss and electric bills. These issues may become part of the political landscape and increase resistance to data center growth. Opposition to data centers, including project cancellations, is reducing investor confidence. The AI boom has delivered windfalls to top executives and select employees, while job losses contribute to anger and community resistance, including protests over local electricity costs.

"“If AI technologies are perceived to be significantly disruptive to society, it could lead to governmental or regulatory restrictions or prohibitions on their use, societal concerns or unrest, or, both, any of which could materially and adversely affect our ability to develop, deploy or commercialize AI technologies and execute our business strategy.”"

"“These issues may increasingly become a part of the political landscape and could result in greater pushback to data center growth.”"

"The growing opposition to data centers, along with some projects getting canceled, is “sapping confidence” among investors, per a client note from Jefferies."

"With so few people benefiting from this theoretically amazing technology - and with job losses underway and projected - there is bound to be anger. The American CEO of London-based Standard Chartered apologized Friday for his comment that the bank would replace “lower-value human capital” with artificial intelligence."

Read at Axios