AI Boom May Not Prevent U.S. Recession, Says Leading Economist

AI Boom May Not Prevent U.S. Recession, Warns Economic Strategist

Despite the surge in AI investments and productivity tools, leading economist Peter Berezin has issued a stark AI boom recession warning, suggesting the U.S. may still face a recession in late 2025 or early 2026.

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🔍 Why AI Alone Isn’t Enough

• Job Growth Slowing: The July non-farm payrolls fell below expectations

• Real Wages Stagnant: Inflation-adjusted income growth is flat

• Energy Prices Rising: Oil back above $95/barrel

• Capital Investment Uneven: AI adoption is heavy in tech but lacking in traditional sectors

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🧠 Berezin’s Analysis

“AI can boost efficiency, but it doesn’t immediately translate to broad-based economic growth,”
said Berezin, Chief Global Strategist at BCA Research.

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📊 Supporting Data

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📉 Market Sentiment

• S&P 500: Mixed movement

• Bond Yields: Flattening curve

• Investor Behavior: Shift toward defensive stocks

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🔮 Conclusion

While AI will reshape industries over the next decade, short-term recession risks are growing due to structural weaknesses in the U.S. economy.