Goldman Sachs exec says AI is not a bubble but a super cycle

Wall Street has been debating all year whether the AI boom has turned into a bubble. Goldman Sachs co-head of investment banking Kim Posnett says the real question is not whether a bubble exists, but whether AI can fundamentally change how companies operate, compete and create value.

Posnett, who has been on the front lines of US corporate AI transformation, says what is happening is not a simple bubble but an "AI investment super cycle" that will drive corporate spending and M&A growth. She notes that AI's potential for productivity gains is huge and can be applied across almost the entire economy.

Posnett predicted at the start of the year that the IPO market would enter a "super cycle," and actual performance has exceeded her expectations. Data from the London Stock Exchange Group shows that as of September 10, global IPO volume reached $206 billion, up 183% year-over-year.