AI valuations may be unsustainable, says Milken Institute Economist William Lee

The soaring valuations in the artificial intelligence (AI) sector may be unsustainable, and a market pullback could be on the horizon, warned William Lee, Chief Economist and Executive Director at the Milken Institute.

While expressing his long-term belief in AI’s productivity-enhancing potential, which he sees as a driver of ‘American exceptionalism’, Lee cautioned that the current market dynamics suggest that recent “bubble talk might have some substance.”

Lee argued that the pricing of AI technologies appears to have gotten ahead of tangible…