Morgan Stanley hails rare ‘reindustrialization renaissance’ of AI economy—but it’s better for computers than humans

Fortune

by Nick Lichtenberg

February 23, 2026

AI-Generated Deep Dive Summary

The AI revolution is reshaping the U.S. economy, not through consumer prosperity but through a massive infrastructure boom centered on data centers and physical resources. Morgan Stanley highlights this as a "reindustrialization renaissance," where investment in technology infrastructure drives growth rather than consumption. Unlike previous tech revolutions, generative AI is less focused on consumer-centric innovation and more rooted in supporting massive computing needs, with data-center-related investments already accounting for 25% of annual GDP growth by 2025. This shift is fueling a multiyear period where investment surpasses consumption as the primary driver of economic growth. Industries like real estate, construction, power generation, and industrial metals are benefiting from this surge in demand, creating significant opportunities for businesses involved in these sectors. However, the benefits for human workers are far less certain. Morgan Stanley warns that the labor market faces "transformational risks" as AI adoption accelerates. The report notes that U.S. consumers are grappling with job anxiety, low savings rates, and rising indebtedness, which could stall consumption growth and exacerbate economic inequality. This K-shaped recovery dynamic further divides the economy between the wealthy and the working class. Tech companies, once seen as asset-light and reliant on recurring revenue models, are being forced to adapt. The AI revolution is transforming them into capital-intensive businesses that require massive investments in computing resources, ending the era of profit-driven multiple expansions. This shift is even impacting coding work, with AI potentially automating much of it. Ultimately, while the AI boom is driving a global infrastructure explosion, its benefits are heavily skewed toward machines and physical systems rather than human workers. This economic realignment underscores the need for businesses to adapt to a new paradigm where investment in technology infrastructure dominates over consumer spending.

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Originally published on Fortune on 2/23/2026