Persistent US inflation could force the Federal Reserve into a hawkish stance, potentially leading to a rate hike.
China's weak consumer demand and industrial overcapacity may lead to deflationary pressures and global trade friction.
The high energy consumption of GPUs makes them unsustainable for the widespread deployment of AI inference.
Political uncertainty and high energy costs could undermine the UK's ambitions to become a global AI leader.
Opportunities Identified
The technological shift towards more efficient NPUs for AI inference and edge computing creates significant opportunities for specialized semiconductor firms.
Strong enterprise demand for AI infrastructure continues to be a major growth driver for companies like Oracle.
The UK's concentration of top-tier universities and government support provides a fertile ground for AI innovation and startups.