UBS says major new US regulation on artificial intelligence is unlikely, even though AI has become a central issue in the midterm elections, and a light-touch approach will likely persist. Part of the reason is the expectation that AI will boost long-term US economic growth. Capital expenditure by major cloud companies, known as hyperscalers, is projected to reach nearly 2 per cent of US GDP in 2026. UBS estimated that AI investment and the wealth effect from rising equity prices together added around 100 basis points to growth in the first half of 2026, when the economy grew 2.4 per cent. In October, President Trump announced a voluntary agreement with 6 major technology companies, including OpenAI and Anthropic, covering internal safety controls, monitoring and independent assessments, but it is not legally enforceable.
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