Several AI bosses have called for a slowdown in the development of the technology, following agentic experiments that went wrong. Now, Daniel Turgel, a White & Case partner, has warned that any slowing in frontier AI work could create a ripple effect with major economic repercussions.

Turgel, who is Co-head of White & Case’s Global Technology Industry Group, said in a comment sent to AL: ‘Any perceived slowdown on AI development risks putting AI-linked companies on a collision course with investors whose expectations have been built around rapid advances.’

That is to say, a significant proportion of America’s economic growth is now tied up with AI companies and related industries – from data centres to chip makers. In fact, if you take AI and all its connected investments out of the stock market then there is a real lack of upward trajectory.

He added: ‘The question now is how significant the ripple effect of any recalibration could be across corporate earnings, IPO plans, global growth as well as the infrastructure investment underpinning the AI boom.

‘With data centres facing mounting constraints on land and power, investment is already extending into ventures developing data centres in space, highlighting the scale of the ambitions riding on continued AI growth.…

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