Goldman Sachs says the AI boom is still early, with investments under 1% of GDP. Productivity gains could justify $300B in AI spending by 2025.
Goldman Sachs has dismissed fears of an AI-driven market bubble, stating that the artificial intelligence boom is still in its early stages. In a new report released on Wednesday, analysts at the investment bank said current spending on AI remains modest when compared to the long-term economic potential of the technology.
The report estimates that U.S. AI-related investments account for less than 1% of GDP. In contrast, previous technology booms such as railroads, electrification, and the internet era peaked at 2% to 5% of GDP. Goldman expects AI investment to rise to $300 billion by 2025, citing continued improvements in productivity and expanding enterprise adoption.
The firm outlined two main reasons behind its optimistic outlook.
