Deutsche Bank: 'Honeymoon Over for AI' — Economic Correction Looms by 2026

• Deutsche Bank analysts Adrian Cox and Stefan Abrudan predict 2026 will be a challenging year for AI, citing disillusionment, dislocation, and distrust.
• AI investment currently props up the global economy, especially in the US, but its impact remains limited for most businesses due to data and integration complexities.
• Bottlenecks in compute capacity, energy, and talent, along with a complex supply chain, are slowing AI development, with memory and energy supply being critical concerns.
• Anxiety surrounding AI is expected to intensify, leading to lawsuits over copyright, privacy, and misuse, alongside concerns about job displacement.
• The geopolitical AI race between the US and China is a significant factor, with efforts to establish global standards and sovereign AI initiatives.

Why It Matters: Deutsche Bank warns the AI 'honeymoon' is ending, forecasting economic correction and increased challenges by 2026.