New Delhi, Nov. 8 -- Gita Gopinath has warned that the AI investment boom could eventually face a market correction, as companies may struggle to generate enough profits to recover the $1 trillion being poured into the technology in 2026 alone.

AI has emerged as one of the biggest investment themes, with companies committing huge sums to infrastructure and development, while some are also cutting jobs to redirect resources towards AI.

Investors, meanwhile, have been chasing exposure to the theme, particularly in markets such as the United States, South Korea and Taiwan, which have benefited from the surge in the technology's demand.

"I personally think that there will be a correction," the Harvard professor and former chief economist o...