According to Bank of America, the artificial intelligence (AI) boom could drive tech returns to levels not seen since the internet era of the late 1990s. The bank’s analysts expect AI to generate a new wave of productivity gains and economic growth, potentially boosting the S&P 500 information technology sector’s earnings by 14% annually through 2024. This projection is based on the assumption that AI will drive a surge in corporate spending on software and services, similar to the internet boom. However, the bank warns that the AI boom may also lead to job losses and increased inequality, as certain tasks become automated. To mitigate these risks, policymakers may need to consider measures such as worker retraining programs and universal basic income. Overall, Bank of America believes that AI will be a transformative force, reshaping industries and creating new investment opportunities.