According to Goldman Sachs’ economists Joseph Briggs and Devesh Kodnani, investments related to Artificial Intelligence (AI) could climb to the astonishing $200 billion by 2025.
They also argued that the United States of America is well-positioned to become the global center of that technology.
AI Could Impact the Economy
Goldman Sachs Research, conducted by Briggs and Kodnani, estimated that Artificial intelligence has “enormous economic potential” and could potentially aid global labor productivity. The economists suggested that a large-scale transformation could happen once businesses invest in physical, digital, and human capital to implement new technologies and reshape their work processes.
“Those investments, which could amount to around $200 billion globally by 2025, will probably happen before adoption and efficiency gains start driving major gains in productivity,” the analysis reads.
Briggs and Kodnani think AI-focused investments could account for up to 4% of the US GDP in the future and up to 2.5% of the GDP of other nations. In their view, the world’s largest economy has the best chance to emerge as a global hub for such technology and could comprise around 50% of the total investments. China, on the other hand, could become the main rival in the field.
The research also determined that market interest in Artificial Intelligence has rapidly increased over the past several months. Approximately every sixth company in the Russell 3000 list has mentioned AI in its earning calls lately. In comparison, just 1% of the firms did so in 2016.
A survey conducted among CEOs of Fortune 500 organizations (shared by Goldman Sachs) revealed that most bosses don’t think AI will impact their businesses or lower their labor needs in the next year. Nonetheless, the estimations are much different when observing a five-year period, with over 60% of executives expecting headcount amendments due to the technology’s advancement.
Some of the Giants Dived in
Artificial Intelligence has already grabbed the attention of some of the biggest corporations, such as Amazon Web Services (AWS) – the cloud unit of the e-commerce giant. Its CEO Adam Selipsky recently said that the entity will distribute $100 million to design a special “program” that could help businesses employ generative AI.
Microsoft and Google are other behemoths who dipped their toes into the field. The former invested $10 billion into OpenAI, while the latter put $300 million into Anthropic.
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