market froth

.AI spending drove two‑thirds of US GDP growth in H1 2025, prompting warnings of market froth. Yet corporate AI investment hit $252.3 bn in 2024, shifting focus from “whether” to “how” to spend. Only 5 % of firms profit from AI; they allocate >20 % of digital budgets, scale early, pursue transformative redesigns, and embed strong governance. Building proprietary LLMs is prohibitive, so diversifying across hyperscalers and alternative architectures mitigates supply risk. Success hinges on clear ROI use cases, organizational readiness, and proactive risk management, turning AI into a sustainable business‑transformation engine despite valuation volatility.