JPMorgan’s Erdoes Says AI Is Still Early, Not a Bubble

​AI Fears Are Missing the Point, She Says
Forget the hand-wringing over whether artificial intelligence is in a bubble. According to Mary Callahan Erdoes, head of JPMorgan Asset and Wealth Management, the real story is that AI’s potential is still vastly underestimated. She argues that investors are obsessing over stock swings when they should be focused on the long runway of growth ahead.

“We’re Only at the Starting Line”
Speaking at a major investing conference, Erdoes pushed back on the idea that soaring valuations automatically spell danger. She compared the current moment to the early stages of past technological revolutions — moments that felt chaotic at first but went on to redefine entire industries.

Companies, she said, haven’t fully figured out how AI will reshape their operations, and the market hasn’t yet priced in what widespread adoption could mean. The disconnect between usage and value, in her view, is temporary.

Big Growth Ahead — and Big Adjustments
Erdoes believes AI will deliver explosive growth on both revenue and cost efficiency. But she also warned that companies supplying the AI boom must figure out how to scale fast enough to meet demand. That imbalance — massive appetite, slower supply — is partly what’s causing dramatic stock movements.

She wasn’t alone in her optimism. Ares Management CEO Michael Arougheti echoed the same point: today’s investment levels are tiny compared to the long-term opportunity.

Not a Crisis, but a Repricing
Recent volatility, including the worst market day in over a month, hasn’t shaken Erdoes. She dismissed recession fears, noting that predictions of an imminent downturn have been wrong for years. If anything, she sees this period as a buying chance — especially in credit markets — as long as the economy stays on stable footing.

Bottom Line: AI Isn’t Overhyped — It’s Understood Too Narrowly
​Erdoes’ message is clear: AI isn’t a bubble inflated by hype. It’s a historic shift still in its early innings, and investors who focus only on daily market jitters risk missing the bigger picture. The revolution is coming — just not all at once.