Milken Institute conference showcases AI optimism despite global tensions
Updated
Updated · POLITICO · May 7
Milken Institute conference showcases AI optimism despite global tensions
6 articles · Updated · POLITICO · May 7
At the Beverly Hilton in Beverly Hills, executives and investors stayed bullish even as Los Angeles gasoline hit $6.20 a gallon and the Iran war disrupted agriculture and advanced-hardware supply chains.
Speakers said markets were pricing in wars, tariffs and volatility, while AI investment, deregulation and expectations the conflict will end soon supported growth and earnings forecasts.
Yet lenders and surveys showed lower-income households borrowing out of necessity and confidence diverging by income, underscoring a political backlash and widening gap between conference exuberance and broader economic anxiety.
As AI drives record wealth, can the wider economy survive the growing affordability gap for average Americans?
How long can markets ignore a global energy crisis and war to chase the AI dream?
Will AI's immense opportunities offset its hidden costs of misinformation, job displacement, and environmental impact?
$725 Billion AI Infrastructure Investment Amid Geopolitical Risks Drives Global Economic Shift
Overview
At the Milken Institute Global Conference 2026, leaders expressed strong confidence in AI as a transformative economic force, highlighting acute supply shortages and unprecedented investment needs that exceed government capacity, making private sector funding critical. Geopolitical tensions, especially in the Middle East, are seen not only as risks but also as drivers of new infrastructure opportunities requiring trillions in capital. Innovations like AI factories and advanced hardware promise productivity gains and job growth, though workforce concerns about displacement remain significant. Bridging this divide calls for coordinated action, including government support and local training. Meanwhile, global capital flows are shifting due to geopolitical and interest rate changes, emphasizing the need for resilient, equitable AI development worldwide.