AI TRENDS | Moody's Analysis: Rising Costs May Stall AI Boom, Impacting Asia-Pacific Exports

Moody's Analytics reported on May 7 that the surge in artificial intelligence could face a slowdown due to rising costs, potentially affecting export growth in the Asia-Pacific region. According to Jin10, the rapid development of AI has been a significant factor in offsetting the negative impact of U.S. tariff increases on Asia-Pacific exports. However, high stock valuations, price hikes, and localized hardware shortages suggest that the AI boom is increasingly likely to pause. Additionally, conflicts in the Middle East have heightened geopolitical and trade risks for Asia-Pacific economies. Moody's Analytics further noted that the combination of rising inflation, trade and supply chain disruptions, and overvalued assets poses risks of policy missteps in the region's fiscal and monetary strategies.