Deutsche Bank’s big warning for 2026: AI is NOT working for CEOs, its benefits are visible only to …

Central banks and investors have warned that artificial intelligence (AI) could face a sharp correction if it fails to deliver on expectations. Now, Deutsche Bank has issued a fresh warning, saying 2026 could be the hardest year yet for the AI sector, says a CNBC report. In a note titled “The honeymoon is over,” the bank said that while AI spending has supported economic growth, most CEOs are not seeing clear business benefits from the technology. According to the bank, AI’s impact remains largely limited to “Silicon Valley and to savvy early adopters,” who tend to work on personal projects, not an “average chief executive” looking for revenue and operational improvements.

AI impact still limited for most companies: Deutsche Bank

“AI will survive,” Deutsche Bank analysts Adrian Cox and Stefan Abrudan wrote, but they said the sector will face “disillusionment, dislocation, and distrust.” They noted that AI’s benefits are still limited to early adopters and technology-focused teams, rather than average company leaders seeking clear revenue gains.“AI investment and optimism are buoying the global economy, accounting for most of economic and earnings growth in the US last year,” they said. However, most firms lack the data and systems needed to use AI at scale. While coding tools have improved quickly, the analysts said AI agents are harder to deploy than many claims suggest. “For most people this feels less like changing from a horse to a tractor and more like upgrading to a more comfortable saddle,” they wrote.

Supply bottlenecks add pressure

Deutsche Bank said AI growth is being slowed by shortages in computing power, energy and skilled workers. “AI depends on the most complex supply chain in history and any one of hundreds of thousands of components can derail the process,” the analysts wrote.They said memory shortages are a growing concern as AI use shifts from training to daily deployment. Energy supply for data centres remains a deeper issue. At the same time, demand continues to rise as companies like Amazon, Microsoft and Google invest heavily, while countries push for “sovereign AI” systems.

Anxiety and distrust on the rise

“Anxiety about AI will go from a low hum to a loud roar this year,” Cox and Abrudan wrote, pointing to lawsuits over copyright, privacy and the impact of chatbots on young users. Job losses linked to AI are another concern, though the analysts warned of exaggeration. “AI redundancy washing will be a significant feature of 2026,” they said.They also flagged growing competition between the US and China, adding that “there will be an escalating attempt to own the global standard.”