How the Popularization of Artificial Intelligence Is Reshaping Technology Markets and the Global Economy

Nathaniel Linetskiy

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Meng, Chen

Abstract:

The rapid popularization of artificial intelligence (AI) has reshaped demand patterns within technology markets, particularly for high-performance computer hardware such as GPUs, data-center processors, memory, and advanced semiconductors. This paper examines how the expansion of AI adoption has increased demand for these components, contributing to rising prices amid supply constraints and highly concentrated manufacturing capacity. By analyzing trends in market demand, supply chain limitations, and capital investment, the study explores how AI-driven growth has intensified competition for scarce hardware resources. The paper also considers broader economic implications, including changes in innovation incentives and potential downstream effects on consumer prices and productivity. Overall, the research highlights the dual role of AI as both a driver of economic growth and a source of structural pressure within technology markets, offering insight into how firms and policymakers may balance innovation, affordability, and market stability in an increasingly AI-driven global economy.