Lisa Shalett, the chief investment officer at Morgan Stanley’s (NYSE:MS) wealth management business, has expressed her concerns about the current market boom, which she believes is heavily reliant on massive capital investments in generative artificial intelligence.

AI Spending Surge Could Trigger Dotcom-Style Risk

Shalett, in an interview with Fortune this week, said the over reliance on generative AI capital expenditures was a potential risk to the market’s stability. She warned that if this narrative falters, it could lead to a “not pretty” situation, similar to the dotcom bubble burst in 2000.

Shalett believes that the market may not experience a “Cisco moment” in the next nine months, referring to the dotcom bubble burst and the subsequent 80% stock plunge of the network gear maker. But it could potentially face one ...