Goldman Sach predicts that AI investment could reach$200 billion worldwide

Goldman Sachs Economic Research reported on Tuesday (August 1) that global investment in artificial intelligence (AI) is increasing rapidly, which may eventually be reflected in GDP to a greater extent. It is estimated that by 2025, the global investment in AI may reach about 200 billion US dollars.

Goldman Sachs economists Joseph Briggs and Devesh Kodnani wrote in a team report that generative artificial intelligence (AIGC) has enormous economic potential and could increase more than a percentage point .

Enterprises must invest significantly in physical, digital, and human capital to adopt AI technology and transform their business processes, as stated by Briggs and Kodnani.

Promote the economy

AI-related investments are climbing from a relatively low starting point and could take several years to have a significant impact on the economy, the two economists wrote . According to Goldman Sachs, the United States is currently positioned as the market leader in AI technology and started relatively early in AI investment.

Goldman Sachs estimates that AI investment could approach $100 billion in the U.S. and $200 billion globally by 2025 . Briggs and Kodnani write that, “despite the extremely rapid growth, the short-term impact on GDP is likely to be rather limited given the very low share of AI-related investment in U.S. and global GDP currently.”

Business surveys indicate that large companies in information, science, and technology industries will adopt AI after 2025.

In the long run, if the economic growth predicted by Goldman Sachs AI is fully realized, AI-related investment may reach 2.5-4% of GDP in the United States.

interest has increased

While it will take time for AI to improve productivity, interest in AI has grown rapidly, with more than 16% of companies in the Russell 3000 mentioning the technology on earnings calls , compared to a percentage in 2016 Less than 1%.

About half of the increase in the graph above occurred after the release of ChatGPT in Q4 2022.

The report also notes that AI investment is expected to focus on four key areas: companies that train and develop AI models, companies that provide the infrastructure (such as data centers) to run AI applications, and companies that develop the software that runs AI applications , and enterprise end users who pay for these software and cloud infrastructure services .

Goldman Sachs economists noted that “while AI investment so far has been focused on model development, generative AI may require a larger hardware and software push to scale.”