Morgan Stanley sees AI spending growth slowing by 2028
In short
Morgan Stanley said AI spending growth may slow sharply by 2028 and shift more toward software. It also said the big buildout is not over because AI still faces shortages of power, labour, and regulatory capacity.
This matters for AI companies and investors watching where money goes next. The report does not give a dollar amount or name the firms most affected.
What the reporting says
Morgan Stanley said AI spending growth is expected to slow sharply by 2028, with the shift favoring software, according to a publisher summary. The report also said the infrastructure buildout is not ending because AI demand remains strong amid shortages of power, labour and regulatory capacity. The available reporting does not give a spending figure or identify the companies directly affected.
Why it matters
Morgan Stanley, as summarized by BusinessLine, expects AI spending growth to slow sharply by 2028 while demand shifts toward software. The summary says the infrastructure buildout continues because the industry still faces shortages of power, labour and regulatory capacity. The report does not provide figures, company names or a timeline beyond 2028.