0504 GMT - Slower model development will undoubtedly slow AI investment, which by some estimates, accounted for around half of U.S. economic growth in 1H of 2025, says Ipek Ozkardeskaya, senior analyst at Swissquote. At a time when the Western world needs AI-led growth to keep its head above water, the impact could be significant, she adds. Trade tensions, wars, disrupted trade routes, spiking energy prices, rising inflationary pressures and rising borrowing costs could only be neutralized by AI, she adds. Hitting the brakes could provide a negative backdrop for cyclical sectors, particularly industrials and consumer discretionary, she says.