Experts Warn of AI Economic Reality Check in 2026

According to experts, the AI bubble may burst in 2026, leading to a shakeout in the sector. The Pentagon could benefit from a collapse in AI spending, but also faces challenges in leveraging AI technology. The US military may partner with struggling AI companies to acquire talent and technology, but cultural change is needed to bridge the gap between the Pentagon and Silicon Valley. This article is based on an interview with retired Lt. Gen. Jack Shanahan, retired Marine Lt. Gen. Michael Groen, and CNAS scholar Joshua Wallin.