The tech sector has been driving market growth this year with the ongoing AI race. RSM Chief Economist Joe Brusuelas recently appeared on Market Domination Overtime to discuss the impact of AI on the industry. According to Brusuelas, AI will be a significant part of the economic narrative and is expected to drive growth, although not as much as the hype suggests. He believes there is a strong business case for AI and that it will also contribute to a forthcoming productivity boom in the industry. Brusuelas acknowledges that AI's transformational effects on the economy will take time and cautions against expecting immediate drastic changes. To gain expert insight and stay up-to-date with market action, watch the full episode of Market Domination Overtime. This post was written by Melanie Riehl. Video Transcript: I'm pleased to introduce our next guest, Joe Brusuelas, RSM's chief economist and a familiar face on our show. Welcome to the studio, Joe. While we'll touch on jobs and economic data shortly, let's first discuss the AI phenomenon and its impact as an economic driver. Yesterday, we spoke to Darren Lou, who mentioned that AI won't contribute as much to economic growth as people anticipate. What are your thoughts on this? Funny enough, I just spent a week at MIT and had the chance to talk to Darren and others. I believe AI will play a significant role in the economic narrative. It's about looking into the future, driving growth, although not as dramatically as the current hype may suggest. There is a strong business case for AI. Furthermore, it will be a crucial component of the upcoming productivity boom. We're not exclusively focused on AI yet, but that phase is just a few years away.

I am extremely optimistic about the entire AI ecosystem and its various components. In fact, I consider it a general-purpose technology similar to steam or electricity, which will gradually transform the economy. Certain segments of the population, particularly those who follow Yahoo Finance, will likely embrace AI in ways that differ from the rest of the country. They will be the early adopters. For instance, here in New York, our friends working at systemically important banks have been utilizing AI and machine learning to manage their portfolios for several years, placing them miles ahead of others. As economists, we have taken into account this financial corporate productivity. As the banks make significant advancements in productivity through AI, it vastly affects the numbers. So we can confirm, based on personal experiences, that AI is spreading beyond just the corporate sector. I can witness it through my investment portfolio's quarterly statements and returns. Moreover, I receive AI-generated emails from my child's middle school, informing me about various matters. While I'm not entirely sure about their use of AI, it shows that AI's influence has extended beyond the corporate world. Indeed, we have all witnessed how AI has become an integral part of our lives. For instance, I frequently travel for business, and the airline I prefer extensively relies on AI in its app. The experience has been remarkably seamless, surpassing what humans are capable of. From a business traveler's perspective, my preferred carrier has significantly improved overall user experience through AI integration.