Jim Covello, head of stock research at Goldman Sachs, warned against the hype surrounding A.I., questioning whether businesses would achieve sufficient returns on the potentially trillion-dollar investments in A.I. technology.
Covello highlighted the issues with generative A.I., stating that its frequent errors raise doubts about its capability to resolve intricate problems reliably, challenging the very foundation of its current valuation.
Following Covello's critical report, A.I.-related stocks saw a notable decline, indicating market skepticism around the soaring investments in A.I. technology that may not yield expected returns.
Reflecting on the tech industry's historical investment patterns, Covello noted that substantial spending on new technologies like A.I. often precedes a lengthy period of adjustment and reassessment thereafter.
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