The U.S. economy expanded at a stronger pace in the second quarter than initially reported, with business investment in intellectual property—particularly artificial intelligence—playing a key role in the upward revision. According to revised data from the Commerce Department, real gross domestic product grew at an annual rate of 2.8% in the second quarter, up from the earlier estimate of 2.4%. The increase was largely fueled by a surge in spending on intangible assets, including software, data, and AI-related technologies. Businesses significantly increased their investments in intellectual property, which rose at a 24.5% annual rate during the quarter. This marks a sharp acceleration from the previous quarter and reflects growing corporate confidence in AI-driven innovation. Companies across sectors, from tech and finance to manufacturing and healthcare, are pouring resources into AI infrastructure, machine learning models, and data systems to improve efficiency and gain competitive advantage. Despite the positive growth momentum, the economic outlook remains uncertain due to ongoing trade tensions. Tariffs on imported goods, particularly from China and other major trading partners, continue to weigh on the economy. These tariffs have contributed to higher input costs for businesses and increased prices for consumers, dampening demand in some areas. The Federal Reserve has noted that trade policy uncertainty is complicating inflation forecasts and influencing monetary policy decisions. While AI investment is driving productivity gains and long-term growth potential, economists caution that the benefits may not be evenly distributed. Smaller firms and workers in less tech-intensive industries could face challenges adapting to rapid technological change. Additionally, rising capital expenditures on AI may lead to higher debt levels for some companies, especially in high-growth sectors. Overall, the revised GDP figures highlight a resilient economy with strong underlying momentum in innovation and technology adoption. However, the long-term impact of tariffs and the pace of AI integration will remain critical factors shaping future economic performance.