AI is winning over consumers - but it's way behind with businesses, say Goldman Sachs analysts

""A lot of consumer applications, they're exemplifying the value of AI, whether it's ChatGPT or Claude application at the consumer level. But at the enterprise level and user level, there are some signs of life, but we're not where we expected," said Kash Rangan, a US software equity research analyst, on Goldman Sachs' "Exchanges" podcast published on Tuesday. While tools like ChatGPT have rapidly captured consumer attention, corporate adoption has been slower."

"Eric Sheridan, a US internet equity research analyst, said the AI infrastructure buildout has "surprised to the upside." That surge, he added, reflects how demand for computing power from generative models such as ChatGPT and Google Gemini has already outpaced available capacity. High spending has left some investors questioning whether the returns will ever match the outlay. Sheridan said the rapid rise in AI infrastructure investment has created growing doubts about the long-term return on investment, even as spending keeps accelerating."

Consumers are rapidly embracing AI applications such as ChatGPT and Claude, demonstrating tangible value in consumer-facing products. Enterprise and user-level adoption remains slower than anticipated, with many companies falling short of previous deployment expectations. Infrastructure buildouts have accelerated, and demand for computing power from generative models like ChatGPT and Google Gemini has outpaced available capacity. Massive investment forecasts, including estimates of $3–4 trillion in cumulative AI infrastructure spending by decade-end, have raised investor skepticism about long-term returns. Many firms publicly emphasize AI initiatives while showing limited evidence of measurable operational or financial payoffs.

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