The Hidden Costs of the AI Boom

The AI revolution is reshaping industries, but beneath the surface lies a complex web of economic pressures. In a recent conversation, Willy Shih, renowned economist and Professor of Practice at Harvard Business School, shared insights from his upcoming book, Where Does My Stuff Come From?, focusing on the global supply chains powering AI.

Infrastructure and Energy Demands

Training large AI models demands extraordinary computational power. Beyond the algorithms, the real cost resides in data center operations, energy consumption, and the physical infrastructure that supports massive-scale AI deployment.

Geopolitical and Regulatory Factors

The flow of chips, software, and talent is increasingly governed by international policies. Willy highlights how export controls, trade restrictions, and geopolitical tensions shape the accessibility and cost of AI technologies worldwide.

Key Takeaway

Understanding the true cost of AI requires looking past the code into the supply chain foundations that determine sustainability and accessibility in the global market.