tech
January 21, 2026
Deutsche Bank declares 'the honeymoon is over for AI' — here's why
2026 will be its hardest year yet for artificial intelligence, according to analysts at the investment bank.
TL;DR
- Deutsche Bank analysts predict 2026 will be a challenging year for AI due to disillusionment, dislocation, and distrust.
- AI's current economic impact is significant, but its transformative benefits are not yet widely realized by most companies.
- Bottlenecks in compute capacity, energy, talent, and complex supply chains are slowing AI development.
- Demand for AI infrastructure is high, driven by hyperscalers and a global push for sovereign AI capabilities.
- Anxiety about AI is expected to increase, leading to lawsuits over issues like copyright, privacy, and ethical concerns.
- Job displacement attributed to AI may be exaggerated, with 'AI redundancy washing' expected to be a notable trend in 2026.
- Geopolitical competition, particularly between the U.S. and China, is influencing the AI race and the drive to set global standards.
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