https://arab.news/7nexn
RIYADH: One of the world鈥檚 leading asset management companies has played down fears the artificial intelligence sector is a bubble akin to the early days of the internet.
Speaking to Asharq Bloomberg on the sidelines of the Future Investment Initiative in Riyadh, Yie-Hsin Hung, president and CEO of State Street Investment Management, also flagged up infrastructure and real estate as areas set to deliver returns as reflected on the current business landscape.
When asked about concerns that AI may not be a sustainable investment, she replied: 鈥淚f you compare today鈥檚 big tech, compared to say the era of the internet bubble, you have companies today that are generating enormous amount of cash flow and able to deliver tremendous returns and I think the promise is there.鈥�
Reflecting on the upcoming meeting of the US Federal Reserve to discuss whether to cut interest rates, Hung struck a postive tone, saying: 鈥淲e鈥檙e calling for 75 basis points of cuts which I think is pretty much the view for the full year, so another 25 after this one. We鈥檇 like to see another 75 basis points next year because we鈥檙e more worried about the labour market but if in fact the Fed doesn鈥檛 cut it would suggest the economy is pretty strong so on balance pretty optimistic.鈥�