In the AI of the storm: Navigating the financial risks, physical limits, and productivity promises of a new economic era.

In just a few years, AI has moved from a promising innovation to a market driving force, backed by record profits, massive investments and a powerful technological revolution narrative. As its macroeconomic and strategic implications are increasingly evident, public and private actors are racing to build AI capacity – with a few players clearly leading.This rapid build‑out carries significant risks and uncertainties, between excessive optimism, bubble-like dynamics, huge monopolistic (and potentially systemic) positions, all unfolding under very real physical and organizational constraints.We explore these issues through four key questions, each forming a distinct section of our report.How systemic is the tech sector becoming? To what extent is the AI boom driving the current economic expansion? Does extreme concentration in a handful of players materially increase tail risks and fragility in the AI ecosystem?Will AI finally unlock a productivity revolution? Can it become a growth driver for Europe and for Asia?What challenges lie ahead for AI leaders? Should we worry about US tech valuations and massive capex? Are their current exceptional profits sustainable as global competition intensifies?What are the structural limits to AI growth? Are energy and advanced semiconductors becoming hard physical ceilings on AI deployment? How will regulation redistribute or even break parts of the innovation cycle?