Dr. Jaijit Bhattacharya, President, C-DEP Research told Times Now Digital, “the global market sell-off reflects growing investor concerns over the future regulatory environment for artificial intelligence in the United States. A Democratic sweep in the midterm elections could lead to greater congressional scrutiny of Big Tech, particularly around AI governance, data centre energy consumption, competition policy and the concentration of computing infrastructure. The AI sector has witnessed substantial investment driven by expectations of rapid commercialisation and sustained earnings growth. Any prospect of tighter regulation, higher compliance costs or restrictions on infrastructure expansion could prompt investors to reassess these valuations. However, the correction should also be viewed in the context of concerns over elevated AI valuations and whether current capital expenditure can generate proportionate returns. For India, the developments present both risks and opportunities. A prolonged correction in US technology stocks could affect global capital flows and investor sentiment. At the same time, greater regulatory uncertainty in the US could encourage technology companies to diversify their AI infrastructure and investment strategies. India should leverage this opportunity by strengthening its domestic computing capacity, data centre ecosystem and AI innovation framework.” Experts believe the focus will be on geopolitical and sector-specific developments going forward.