Trump continues pushing for AI despite report warning of its dire risks: leaked report
A leaked Treasury Department internal report revealed that seasoned analysts warn of "significant risk" to the entire economic system, despite the Trump administration publicly championing generative AI companies.
The report, obtained by NOTUS, indicates AI firms are more deeply entrenched in the U.S. economy than dotcom predecessors and could trigger widespread financial damage if market conditions deteriorate or productivity goals are missed.
Should AI companies struggle, Treasury analysts predict stock markets, private credit markets, data center financiers, cloud providers, chip manufacturers, and utilities would all suffer consequences, the report explains.
“A downturn in the AI market would send shockwaves throughout the entire economic ecosystem," the analysts wrote.
NOTUS reported, "Publicly, the Trump administration is bullish about AI. Privately, some of its analysts are weighing AI against the dotcom bust."
President Donald Trump's administration created the AI Action Plan, which speeds up the construction of GenAI data centers. It also rescinded former President Joe Biden's regulations on AI and openly endorsed AI projects, according to AP.
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