A recent financial giant Goldman Sachs report suggests a global investment in new technology will surge. Within the next two years, AI-related investment might reach $200 billion.
“Generative AI has enormous economic potential and could boost global labor productivity by more than 1 percentage point a year in the decade following widespread usage,” the report states.
Goldman Sachs Research estimates that AI investment might reach $100 billion in the U.S. and $200 billion globally by 2025. However, the near-term GDP impact is expected to be “fairly modest” due to AI-related investment being a small share of the global GDP.
Investment in AI will be concentrated in four key sectors: AI model development, infrastructure supply, AI software creation, and enterprise end-users. Economists expect increased spending on AI software and hardware for model training and queries.
Fortune 500 CEO Survey
According to the 2021 American Business survey, only 4% of US companies currently utilize AI. CEO surveys indicate that 22% anticipate generative AI’s impact on their company’s labor requirements in the next three years. However, most expect to integrate AI within the next three to ten years. AI adoption may begin significantly affecting the US economy between 2025 and 2030 if these predictions hold.
Goldman Sachs Research sees early AI adoption in a few industries, but broader macro effects are years away. Past technology breakthroughs, like electric motors and personal computers, took time to impact the economy significantly. These innovations needed about half of U.S. businesses to adopt them before results showed up in the macro data.
