The artificial intelligence boom may be nearing a slowdown amid rising costs,
potentially weighing on Asia-Pacific export growth, Moody’s Analytics says. The
AI upswing has helped offset pressure from higher U.S. tariffs on the region’s
exports, it notes.
However, stretched equity valuations, rising prices, and selective hardware
shortages suggest the cycle is “increasingly ripe for a pause,” it adds. The
Middle East conflict has further lifted geopolitical and trade risks for
Asia-Pacific economies.
Moody’s warns that the mix of higher inflation, trade and supply-chain
disruptions, and elevated asset valuations raises the risk of policy missteps
across the region.
