This BlackRock Investment Institute report examines the economic and investment implications of artificial intelligence (AI). It analyses AI's three-phase evolution—buildout, adoption, and transformation—projecting massive infrastructure investment and potential productivity gains but acknowledging significant uncertainties. The report compares the current AI boom to the dot-com bubble, arguing key differences exist, and suggests investment opportunities across the AI tech stack and private markets. Finally, it outlines potential risks, such as inflation from rapid adoption and regulatory challenges.