Daniel Pinto, vice chairman of J.P. Morgan Chase, believes that the AI sector is still overvalued and expects a correction in the industry. Pinto said during a panel discussion at the International Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority that he truly believes that productivity will usher in a wave of significant increases, and that AI will have a significant impact. But he cautioned everyone to watch the pace of growth carefully, because for all of this stuff currently being developed, someone will eventually have to pay for it. Industries other than AI and everyone else must pay trillions of dollars to these companies to justify these investments. He said that AI companies need to prove that such a huge investment scale and current valuation are reasonable; the pace is probably a bit too fast now. Pinto said there may be a “pullback” in the AI industry. He said that compared to the current market prices of these companies, the market's expectations for revenue and profit growth may be too steep, which may lead to a repricing of the entire industry.

Daniel Pinto, vice chairman of J.P. Morgan Chase, believes that the AI sector is still overvalued and expects a correction in the industry. Pinto said during a panel discussion at the International Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority that he truly believes that productivity will usher in a wave of significant increases, and that AI will have a significant impact. But he cautioned everyone to watch the pace of growth carefully, because for all of this stuff currently being developed, someone will eventually have to pay for it. Industries other than AI and everyone else must pay trillions of dollars to these companies to justify these investments. He said that AI companies need to prove that such a huge investment scale and current valuation are reasonable; the pace is probably a bit too fast now. Pinto said there may be a “pullback” in the AI industry. He said that compared to the current market prices of these companies, the market's expectations for revenue and profit growth may be too steep, which may lead to a repricing of the entire industry.