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Hello and welcome to The Bunker, your daily ration of news without the nonsense. I'm Seth Tivel.

The rise and rise of AI has been an unmissable story in recent years, and endless talking up of the endless possibilities of an AI revolution have seen record investment in tech companies. But as the bunker has

covered before, there is growing concern that we are living in a big, fat bubble. And when that bubble

bursts, what happens to the increasingly AI-centred economy we've been building? Here to shed some

light on it is Josh Roberts, Capital Markets Correspondent for The Economist.

Welcome to the bunker, Joshua.

Hi, Seth. Thanks for having me.

A lot of the investment in AI is framed as paving the way to some really game-changing shifts in how we do things.

And there have been some successes.

But a question for you as an economist, are we seeing fundamental changes in how things are valued?

So we're certainly seeing fundamental changes in how things are valued? So we're certainly seeing fundamental changes in how companies are valued.

We've seen the valuations of the biggest kind of tech and AI-linked firms absolutely

balloon over the past few years.

I think there, in kind of markets and investment, is the biggest effect that we're seeing.

So far, the effect on the actual economy, on the real economy, is much smaller. There's kind of anecdotal evidence that AI is affecting employment, particularly graduate employment.

There's evidence that spending on AI is providing quite a boost to, in particular the American economy. But so far, the evidence

that it's actually having knock-on effects on growth is fairly limited. And when we say anecdotal

evidence of graduate recruitment, I mean, we're talking about the difficulty of entry-level jobs,

that kind of thing. Yeah, well, we, so we certainly know that entry-level jobs have fallen. We

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