Goldman Sachs Forecasts $200 Billion Global Investment in AI by 2025

Goldman Sachs Forecasts $200 Billion Global Investment in AI by 2025

Goldman Sachs economists have released a report highlighting the exponential growth and potential impact of investment in artificial intelligence (AI) on the U.S. economy. The report indicates that generative AI, in particular, could outshine the revolutionary effects of electricity and personal computers, contributing significantly to U.S. gross domestic product (GDP).

The economists, Joseph Briggs, and Devesh Kodnani, estimate that generative AI adoption could boost global labor productivity by more than 1 percentage point annually in the decade following widespread usage.

However, to achieve this transformative potential, businesses will need to make substantial upfront investments in physical, digital, and human capital, reshaping their processes and embracing new technologies.

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Global AI investments could touch $200 billion by 2025

According to the report, global AI investments could reach approximately $200 billion by 2025. The initial phase of investment will precede the major productivity gains driven by widespread AI adoption and efficiency improvements.

While AI investment is expected to experience exponential growth, it currently accounts for a relatively small share of both U.S. and global GDP. The analysts note that much of the current investment is focused on AI model development, and a significantly larger push in hardware and software is required for generative AI to scale effectively.

Goldman Sachs predicts that AI adoption will start to have a meaningful impact on the U.S. economy between 2025 and 2030. As businesses embrace AI and leverage its capabilities, the transformative potential of generative AI on U.S. GDP becomes increasingly apparent.

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