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Quantifying the AI boom crowding-out effect
United States📈 EconomyCenter8/21/2026

Quantifying the AI boom crowding-out effect

Goldman Sachs economists analyzed the economic impact of the current AI boom, finding that while it does lead to some 'crowding out' effects, such as diverting resources from other technology investments and construction, it is less severe than commonly believed. They estimate AI investment will reach approximately $600 billion this year, representing 2% of U.S. GDP. The report highlights that AI-driven demand has shifted spending within corporations, such as reallocating IT budgets toward AI services rather than other technologies. Additionally, the rapid expansion of data centers has pulled construction resources away from other projects due to higher profit margins in data center development. However, the study suggests these impacts are relatively small, with increased borrowing costs affecting non-AI investment by only about $10 billion.

Rillet, an AI-driven accounting startup, achieved a remarkable milestone by securing $100 million in funding within 48 hours, propelling it to a $1 billion valuation. The rapid success came shortly after the company presented impressive financial growth figures during a recent board meeting. Co-founder and CEO Nicolas Kopp expressed confidence in the outcome, attributing the swift fundraising to the growing demand for modern accounting solutions amid a nationwide shortage of traditional accountants. The company, which launched in stealth mode two years ago, has already attracted substantial investment. It previously raised $200 million from prominent venture capital firms such as Iconiq, Andreessen Horowitz, and Sequoia. Rillet now serves 600 customers, many of whom are transitioning away from established platforms like Oracle and NetSuite. According to Kopp, these clients are actively replacing their existing accounting systems with Rillet's AI-native solution, indicating a strong shift toward more efficient, technology-based financial management. During the board meeting, Rillet showcased significant progress since its $70 million Series B round last summer. Annualized revenue increased substantially, and the company expanded its client base, including several public companies. Additionally, Rillet formed a strategic partnership with EY, a global auditing firm, to integrate AI-powered tools into its services. This collaboration highlights Rillet's ambition to redefine the finance industry through intelligent automation. Following the board meeting, Rillet received immediate interest from investors. Within 48 hours, the company secured a $100 million Series C round, marking its transition to a unicorn status. Kopp emphasized that the fundraising was not intentional, stating that the company did not seek additional capital. Instead, the momentum generated by recent performance and strategic partnerships led to the unexpected influx of funds. Seth Pierrepont, a general partner at Iconiq who spearheaded the latest funding round, noted that while the process seemed rapid, it was not entirely unanticipated. He highlighted Rillet's ability to challenge long-standing incumbents in the accounting sector, describing the investment as a logical step given the company's track record. Pierrepont also joined the Rillet board, underscoring the confidence placed in the startup's future potential. Julien Bek, a lead investor from Sequoia, echoed similar sentiments. He explained that the decision to invest was straightforward, citing Rillet's consistent growth and its broader vision beyond mere accounting. Bek pointed out that Rillet is positioned to revolutionize the entire finance function, potentially becoming a key player in the AI-driven software landscape. He further suggested that the company's focus on agentic finance could position it among the most impactful applications of AI technology. Rillet's approach to AI integration is distinct. Rather than relying solely on human input, the platform is designed to enable AI agents to handle complex bookkeeping tasks. This allows users to collaborate with AI, enhancing efficiency and accuracy. The company's clientele spans diverse industries, ranging from small businesses to large enterprises, including a notable sports franchise. Kopp revealed that approximately 50% of Rillet's customers originate from Intuit, with significant portions also coming from NetSuite, Sage Intacct, Oracle, SAP, Workday, and Microsoft products. Data security is a priority for Rillet, especially given the sensitivity of financial information. The company employs model routing, allowing customers to choose preferred foundational models such as OpenAI or Anthropic. Furthermore, Rillet ensures that these models do not train on user data, maintaining privacy and control. The system also features no cross-training, ensuring that each customer's data remains confidential. Additionally, Rillet's AI agents possess memory capabilities, enabling them to retain and utilize historical data for continuous improvement. Recently, Rillet introduced a governance feature that enables accountants to review and audit every decision made by AI agents. This functionality allows users to verify the accuracy of calculations and ensure transparency. Developing this feature proved challenging, as the team had to translate complex AI processes into understandable formats for human oversight. This effort underscores Rillet's commitment to both innovation and accountability in its AI-driven solutions.

How this report was made. Objective News wrote this report from 3 source articles, using AI-assisted synthesis under our methodology. It is our own text, not a copy of any single outlet. Read our methodology.

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6 reports

MarketWatch logoMarketWatchIndependentCenterFactual 85Objective 808/13/2026
Salesforce’s stock gets a boost as J.P. Morgan says AI fears are overblown

MarketWatch reports that Salesforce's stock received positive attention after J.P. Morgan analysts suggested that concerns about artificial intelligence (AI) may be exaggerated. The analysts highlighted some promising AI features within Salesforce's offerings, which could lead to a potential 29% increase in the company's share price.

Bias read (Center): The article presents an analysis from J.P. Morgan regarding Salesforce's AI capabilities without overtly favoring any particular political ideology. It focuses on financial implications and technological advancements rather than taking a clear ideological stance. The framing remains balanced, though

Why factuality (85): This article discusses Salesforce's stock performance and mentions AI features, but it does not reference the primary source document about Nvidia's $500 billion financing deal. It focuses on a separate topic, making it less relevant to the main event. However, it is factually accurate regarding Sal

Why objectivity (80): The tone is neutral, focusing on stock performance and analyst predictions. There is no clear bias toward any particular outcome, though the mention of 'AI fears being overblown' could be interpreted as slightly positive sentiment toward AI.

MarketWatch logoMarketWatchIndependentCenterFactual 85Objective 758/13/2026
Bill Ackman once exited his Netflix stake in a huff. He’s buying the streaming giant again, as well as these five stocks.

Bill Ackman, a prominent investor, has decided to reinvest in Netflix after previously selling his stake in a dispute. His investment firm, Pershing Square, recently added Netflix to its portfolio along with five other stocks within the past six months. This move suggests renewed confidence in Netflix's potential despite previous disagreements.

Bias read (Center): The article reports on Bill Ackman's financial decisions regarding his investments in Netflix and other stocks. While Ackman is a notable figure in finance and politics due to his activism and influence, the focus of the article is on his investment strategy rather than any overtly political stance.

Why factuality (85): The article reports that Bill Ackman has re-entered his Netflix stake after previously exiting in a huff, aligning with known public statements from Ackman and Pershing Square. It lists Netflix as one of six stocks added in the last six months, which matches available records of Pershing Square's po

Why objectivity (75): The article presents the information in a neutral tone but uses phrases like 'apple in Bill Ackman’s eye' which may imply a positive sentiment toward Netflix. While not overtly biased, the phrasing suggests a favorable view of Ackman's investment decisions.

TechCrunch logoTechCrunchIndependentCenterFactual 85Objective 658/21/2026
How AI accounting startup Rillet raised $100M and became a unicorn in 48 hours

Rillet, an AI-native accounting startup, raised $100 million in just 48 hours, achieving a $1 billion valuation. The company has capitalized on the current shortage of accountants in the U.S., offering an alternative to traditional accounting platforms such as Oracle and NetSuite. Rillet has grown rapidly, securing 600 customers, including public companies, and forming an alliance with EY to integrate AI into financial processes. Investors like Iconiq and Sequoia have backed the startup, citing its ability to challenge long-standing industry leaders. Rillet's technology is designed to allow humans to collaborate with AI agents in managing corporate finances, positioning it as a disruptor in the broader finance sector.

Bias read (Center): The article focuses on a business development involving a tech startup and does not engage with political issues, policies, or figures. There is no framing that suggests a political bias; the content remains focused on technological innovation and market dynamics.

Why factuality (85): The article references the accountant shortage as a driver of Rillet's growth, aligning with the primary source document's discussion of the shortage. However, it does not cite specific data from the primary source or mention the 192,000 enrollment increase or the 20% drop in accounting graduates. I

Why objectivity (65): The article presents Rillet's success in a positive light, emphasizing rapid growth and unicorn status. While it provides some background on the industry challenge, it frames the situation primarily through the lens of a startup's achievement, which may be seen as biased toward entrepreneurial innov

Axios logoAxiosIndependentCenterFactual 80Objective 858/12/2026
Quantifying the AI boom crowding-out effect

Goldman Sachs economists analyzed the economic impact of the current AI boom, finding that while it does lead to some 'crowding out' effects, such as diverting resources from other technology investments and construction, it is less severe than commonly believed. They estimate AI investment will reach approximately $600 billion this year, representing 2% of U.S. GDP. The report highlights that AI-driven demand has shifted spending within corporations, such as reallocating IT budgets toward AI services rather than other technologies. Additionally, the rapid expansion of data centers has pulled construction resources away from other projects due to higher profit margins in data center development. However, the study suggests these impacts are relatively small, with increased borrowing costs affecting non-AI investment by only about $10 billion.

Bias read (Center): The article presents an economic analysis from Goldman Sachs, focusing on the financial implications of AI investment without overtly favoring any political stance. It discusses both the benefits and limitations of AI’s economic impact, using objective metrics and avoiding ideological language.

Why factuality (80): The article accurately summarizes findings from Goldman Sachs economists about the crowding-out effects of AI investment, referencing the broader context of the primary source document. It cites specific figures and analysis, showing good alignment with the larger economic trends discussed.

Why objectivity (85): The article presents the findings in a neutral academic tone, discussing both the impacts and limitations of AI investment without taking sides.

MarketWatch logoMarketWatchIndependentCenterFactual 75Objective 808/21/2026
6 AI hardware stocks to own for the remainder of the year, according to an analyst

An analyst from Evercore ISI has identified several AI hardware stocks as potential investments for the remainder of the year, highlighting strong growth prospects for companies involved in storage solutions, networking infrastructure, and Apple. The analysis suggests these sectors are well-positioned to benefit from ongoing advancements in artificial intelligence technology.

Bias read (Center): The article presents an investment recommendation based on market analysis rather than taking a clear ideological stance. It focuses on financial opportunities within the AI hardware sector without overtly favoring any particular political agenda or ideology.

Why factuality (75): The article discusses AI hardware stocks based on an analyst's recommendation from Evercore ISI. Since no primary source document was available, factuality is judged against the cross-source consensus. The content aligns with typical financial reporting on AI stocks, but lacks specific data or quote

Why objectivity (80): The tone remains professional and informative, focusing on market trends and analyst insights without overt bias. It presents the analyst's view as part of broader market sentiment, maintaining a balanced approach.

MarketWatch logoMarketWatchIndependentCenterFactual 75Objective 808/17/2026
The AI productivity payoff is coming. Here are 20 stocks primed to capture the gains as adoption spreads.

Goldman Sachs notes that investors have primarily focused on artificial intelligence infrastructure companies rather than those directly benefiting from AI-driven productivity improvements. The report highlights potential opportunities in stocks that could capitalize on the growing adoption of AI technologies across various industries. While the article suggests there are 20 stocks positioned to benefit from this trend, it does not specify which companies they are. The focus appears to be on identifying investment opportunities within the AI sector as it continues to expand.

Bias read (Center): The article presents an economic outlook regarding AI adoption and its impact on stock performance without overtly favoring any particular political ideology. It focuses on market trends and investment strategies rather than taking a partisan stance. The framing remains neutral, discussing financial

Why factuality (75): This article references Goldman Sachs' view on AI productivity stocks, again without access to the original source. Factuality is assessed through alignment with similar financial reports. The claim about investor focus on infrastructure over productivity aligns with common industry observations, th

Why objectivity (80): The language is neutral, presenting Goldman Sachs' perspective as part of a larger trend. There is no evident editorializing or emotional language, keeping the focus on market analysis rather than opinion.

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