AI-powered IT spend matches dot-com peak, says IMF, but...

IT spending is at its highest since the peak of the dot-com boom, according to the International Monetary Fund (IMF). And while the IMF say an AI bubble is less likely to burst, it could have a much bigger impact.

The IMF calculates that IT investment has reached around 120% of GDP in the US, the same as its previous peak in 2001, just before the dot-com market crash.

However, IMF Financial Counsellor Tobias Adrian and Research Director Pierre-Olivier Gourinchas said a more gradual rise in investment and more robust earnings meant a repeat of that particular bit of history is not certain.