Usman Salis
AI isn't just tech hype anymore – it's literally powering America's economic growth in 2025. A recent chart making rounds on X shows that business spending on AI-related stuff (think computers, software, processing equipment) has actually overtaken consumer spending as the biggest contributor to GDP growth. That's pretty wild when you consider the U.S. economy has always been driven by people buying things.
AI Investment Crushes Consumer Spending
The data tells a crazy story. While consumer spending (PCE) has been limping along at around 0.75% contribution to GDP – sometimes dropping near zero – AI-related business investments have skyrocketed to nearly 2.75% at their peak. We're talking about a complete flip from how the economy usually works.
Companies are basically going all-in on AI infrastructure – servers, software, processing tools, you name it. Meanwhile, regular folks aren't spending like they used to, but businesses are throwing money at anything AI-related like there's no tomorrow.
What This Means for Everyone
This shift is huge for a couple reasons. First, it shows businesses are betting big on AI as their growth strategy, not just waiting for consumers to open their wallets. Second, it suggests we might be seeing a fundamental change in what drives economic growth – from people buying stuff to companies investing in tech.
For policymakers, the message is pretty clear: maybe it's time to focus as much on helping businesses go digital as it is on getting consumers to spend more money.
Usman Salis
