Goldman Sachs Economist: Global AI Investment to Increase to $200 Billion by 2025

Zhitong Financial APP learned that **Goldman Sachs economists said that a large amount of capital will flow into the field of generative artificial intelligence, and it is expected that by 2025, the total global investment in generative artificial intelligence may increase to $200 billion billion, an increase that may boost the overall economy. **Goldman Sachs economists said:" Generic artificial intelligence has huge economic potential. In the decade after widespread use, it may increase global labor productivity by more than 1 percentage point per year." In addition, combined with the bank's assumptions about the percentage of generative AI investment in GDP and the GDP forecast of the US Congressional Budget Office, Goldman Sachs economists predict that by 2033, the total investment in generative AI in the United States will exceed $1.5 trillion. Goldman noted that the bank "looked at previous world-changing innovations in power and personal computers" that "triggered investment of up to 2 percent of U.S. GDP after being widely used in the economy". According to the Congressional Budget Office, U.S. GDP is expected to reach $39.2 trillion by 2033. Goldman Sachs predicts that over the next decade, investment related to generative AI could reach a peak of 2.5-4% of U.S. GDP, or $980 billion-$1.57 trillion. Goldman Sachs economists note: "Interest in generative artificial intelligence has increased rapidly. More than 16% of the constituent companies in the Russell 3000 index mentioned this technology in their recent earnings call, compared with less than 1% in 2016." Goldman Sachs pointed out that the investment in generative artificial intelligence will first benefit the infrastructure providers of this technology, including many cloud service providers such as AI chip giants NVIDIA (NVDA.US) and Microsoft (MSFT.US). The bank believes that the share prices of Nvidia and Microsoft may already reflect investors' optimistic expectations of how much generative artificial intelligence will improve their businesses. Goldman Sachs also said that investors may also consider the shares of other companies, such as Accenture (ACN.US), ServiceNow(NOW.US), Snowflake(SNOW.US), etc., which have launched products and services related to generative artificial intelligence, but have not yet quantified future income. If generative AI helps these companies grow faster than investors expect, this uncertainty could create considerable upside.