"The markets may be fretting about an AI bubble, but Goldman Sachs says the boom is still in its opening act. That's because the scale of current investment remains small compared with the potential economic payoff, analysts at the Wall Street giant argue. "The enormous economic value promised by generative AI justifies the current investment in AI infrastructure andoverall levels of AI investment appear sustainable as long as companies expect that investment today will generate outsized returns over the long run,""
"The firm projects that widespread AI adoption could add $20 trillion to the US economy, with about $8 trillion of that flowing to companies as capital income. "Generative AI still appears set to deliver a rapid acceleration in task automation that will drive labor cost savings and boost productivity, with our baseline estimates suggesting a 15% gross uplift to economy-wide US labor productivity following full adoption, which we expect will realize over a 10-year period,""
Current AI spending remains small relative to the projected economic payoff from generative AI. Generative AI promises large productivity gains and requires massive computing power and infrastructure. Widespread adoption could add about $20 trillion to the US economy, with roughly $8 trillion accruing to companies as capital income. Baseline estimates indicate a potential 15% gross uplift in US labor productivity following full adoption, expected to materialize over a ten-year period. AI-related investment in the US is currently under 1% of GDP, which is modest compared with earlier technology revolutions that reached 2%–5% of GDP.
Read at Business Insider
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