AI investments projected to reach $200 billion by 2025, with US as global hub: Report
As AI investments surge, the global economy stands on the precipice of a transformative era, with the US positioned at the forefront of this technological revolution.
artificial intelligence
Highlights
- AI investments have been projected to soar tremendously in the next two years
- The US is poised to cement itself as a global hub for AI technology
In a recent report by Goldman Sachs economists Joseph Briggs and Devesh Kodnani, the trajectory of Artificial Intelligence (AI) investments has been projected to soar to a staggering $200 billion by 2025. The study also highlights that the United States is poised to become the epicenter of AI technology, with potential implications for global labor productivity and economic growth.
AI potential & economic impact
Goldman Sachs Research suggests that AI possesses immense economic potential and could trigger a substantial transformation in the business landscape. The report emphasizes that businesses are set to invest in physical, digital, and human capital to implement AI technologies and restructure their operational processes. This wave of investments, projected to reach around $200 billion globally by 2025, is expected to precede the adoption and efficiency gains that will eventually drive significant productivity growth.
US emerges as AI powerhouse
The economists predict that AI-focused investments could account for up to 4% of the US Gross Domestic Product (GDP) in the coming years, positioning the US as a global hub for AI technology. The report suggests that the US could make up around 50% of the total AI investments, while China emerges as a formidable contender in the field.
Rapid market interest
The research underscores the escalating market interest in AI, as evidenced by corporate earnings calls. Approximately one-sixth of companies on the Russell 3000 list have recently mentioned AI, marking a significant increase from just 1 percent in 2016.
CEO perspectives & industry giants
While a recent survey among Fortune 500 CEOs revealed that a majority do not expect AI to impact their businesses or decrease labor needs in the upcoming year, over 60% of executives foresee adjustments to their workforce within a five-year timeframe due to AI advancements.
Leading corporations such as Amazon Web Services (AWS), Microsoft, and Google have already embraced AI technology. AWS, for instance, plans to allocate $100 million towards a special AI program to aid businesses in adopting generative AI. Microsoft's $10 billion investment in OpenAI and Google's $300 million funding in Anthropic demonstrate their commitment to shaping the AI landscape.
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