$200 Billion Invested In AI By 2025 Could Surpass Energy and PCs by Goldman Sachs
From Goldman Sachs economists, by 2025, investments in AI may make up as much as 4% of the US GDP. The financial effect of artificial intelligence on the US economy may surpass that of electricity and personal computers in the future according to experts at Goldman Sachs, a major investment banking firm.
The economists Joseph Briggs and Devesh Kodnani of Goldman Sachs stated in an August 1 investment study that artificial intelligence (AI) might attract up to $200 billion in worldwide investments by 2025, with half of those coming from the US, increasing the country's gross domestic product (GDP). Goldman's analysts predicted that artificial intelligence (AI) might contribute up to 4% of GDP in the United States and 2.5% in other countries that have already started making significant investments in the technology. In contrast, previous tech booms sparked by the advent of electricity and PCs saw GDP expand by 2%.
Investment growth projection of AI. Source: Goldman Sachs
Goldman credited the quick progress that has occurred in generative AI for much of the anticipated profits. OpenAI's ChatGPT chatbot is the most well-known utilization of generative AI technology; other products in this subsector include Midourney, an image generation program, and Eleven Labs, a text-to-speech generator. These advantageous effects of generative AI do, however, come at a price: companies will need to make significant early investments. Enterprises will need to make major initial investments in tangible, digital, and human resources to gain access to new technologies and reshape business processes in order for large-scale transformation to occur, the paper stated.
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In addition, Goldman pointed out how many businesses have integrated or discussed AI, with 16% of Russell 3000 companies bringing up the topic on their earnings calls. Given that this number is far higher than the less than 1% figure from 2016, the bank claimed that this places America at the forefront of AI advancement. The economists pointed out that although it's difficult to forecast when the AI investment cycle would peak, company surveys conducted recently indicate that AI will start to have a major influence on investments after 2025.
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