Ken Griffin Warns AI Boom Could Take Decades, Not Years: 'Could Be 20 Years…It Can Be 30 Years'

Billionaire investor and Citadel CEO Ken Griffin is pumping the brakes on the rampant enthusiasm for artificial intelligence (AI), warning that its true economic impact may be decades away while simultaneously sounding the alarm on immediate economic threats, including high inflation and a historically weak U.S. dollar.

AI Boom Eerily Similar To Early Days On The Internet

Speaking at the ‘Future of Global Markets 2025’ conference, Griffin drew parallels between the current AI boom and the early days of the internet.

While he believes AI will ultimately change the world, he cautioned that investors are miscalculating the timeline for its widespread adoption and profitability.

“The dream may not take three or five years to play out, it could be 20 years… it can be 30 years,” Griffin stated. He predicted the industry would undergo “a real sort of sorting at the winners or losers,” similar to the dot-com bubble, before the technology’s true value is cemented.

See Also: Ken Griffin: ‘Gold Is At Record Highs’ And Crypto’s ‘Unbelievable’ Run Is A Sign Of Portfolio Hedging Against US Risk — What Analysts Say

Griffin Sounds Alarm On Inflation

Pivoting from future technology to present-day dangers, Griffin expressed grave concern over the U.S. economy.

“Inflation is substantially above target and substantially above target in all forecasts for next year,” he said.

He linked this persistent inflation directly to the dollar’s woes, highlighting its “single biggest decline…in six months in 50 years.” This weakness, Griffin argued, is forcing investors and even central banks to look for alternatives.

He described a troubling trend of investors seeking to “de-dollarize” their holdings, turning to assets like gold as a “safe harbor asset in a way that the dollar used to be viewed.” He called this shift a “really concerning” development for America’s financial standing on the global stage.

Paul Tudor Jones Sees Stock Market Blow-Off

Not only Griffin, but Paul Tudor Jones, the billionaire hedge fund legend known for calling the 1987 crash, also warned the investors to prepare for a wild finish to the bull market.

On Monday, Jones said all the ingredients are in place for a “blow off” rally, but cautioned it could end “really, really bad.” History, he says, often rhymes, and today’s tech-heavy market shows striking parallels to the late 1990s dotcom surge.

Price Action

Here is a list of some AI-linked exchange-traded funds that investors can consider.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.028% at $671.42, while the QQQ declined 0.012% to $607.64, according to Benzinga Pro data.

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• Jeff Bezos, David Solomon And Now Sam Altman Warns Of A Brewing AI Bubble, But Expert Says ‘They Want The Bubble To Pop:’ Here’s Why

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga.

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