Artificial intelligence could eventually have a bigger financial impact on the American economy than electricity and personal computers, according to economists at investment banking giant Goldman Sachs.
In an Aug. 1 investment report, Goldman Sachs economists Joseph Briggs and Devesh Kodnani predicted that AI could pull as much as $200 billion in global investments by 2025 — with half of that in the United States — boosting its gross domestic product (GDP).
While past tech booms spurred by the introduction of electricity and PCs saw GDP grow 2%, Goldman economists estimated that AI could account for up to 4% of GDP in the United States and 2.5% in other nations that have already begun investing heavily in the technology.
Projection of AI investment growth globally and in the U.S., China over next three years. Source: Goldman Sachs
Goldman attributed much of the expected gains to the rapid advancements being made in generative AI. The most notable example of generative AI technology is OpenAI’s chatbot ChatGPT, but the sub-sector also includes tools such as image creation software Midourney, and text-to-speech generator Eleven Labs.
“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.”
But these productive benefits of…
