- The report says that generative artificial intelligence has huge economic potential.
- Goldman Sachs also predicts that in the long term, investment in AI could peak at 2.5-4% of U.S. GDP.
A recent report from Goldman Sachs (GS) Bank says that investment in artificial intelligence is growing rapidly and could have a much larger impact on U.S. gross domestic product (GDP) than the introduction of electricity or the advent of personal computers.
“Generative artificial intelligence has great economic potential and could boost global productivity by more than 1% annually within a decade,” wrote analysts Joseph Briggs and Devesh Kodnani.
AI-related investments could reach as high as 2.5-4% of GDP in the U.S. and 1.5-2.5% of GDP in other major leading economies if GS’s AI growth forecasts fully come true, they said.
The bank’s document also said market interest in artificial intelligence is growing rapidly and already more than 16% of Russell 3000 companies have mentioned the technology in earnings reports, up from less than 1% of those firms in 2016.
Based on this data, as well as equity analysts’ revenue growth forecasts for key AI-exposed businesses, Goldman Sachs predicts that AI investment could reach $100 billion in the U.S. and $200 billion globally by 2025.
“While this growth is extremely rapid, the impact on GDP over the long term is likely to remain very limited, as AI-related investments now account for only a small share of U.S. and global GDP,” said analysts Briggs and Codnani.
Reminder, earlier, an ex-Goldman Sachs executive predicted that the number of cryptocurrency users would grow to 1.2 billion
.