Global investment in AI could near $200 billion by 2025: Goldman Sachs

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A report by Goldman Sachs economists projects that global private investment in artificial intelligence (AI) may rise from $91.9 billion in 2022 to $158.4 billion in 2025.

For comparison,totaled $20.6 billion in 2022 and is projected to rise to $35.6 billion in 2025, according to the report.

The authors found that the bulk of investment in AI is likely to be focused on four business segments including firms that train or develop AI models; those that provide infrastructure to support AI applications like data centers; software development companies to enable the use of AI; and the corporate end-users paying for software and cloud infrastructure services.

"While AI investment thus far has been focused on model development, a substantially larger hardware and software push will likely be required for generative AI to scale," Briggs and Kodnani wrote.Even as AI investment is projected to ramp up dramatically in the next few years, it would still only represent a small percentage of U.S. and global economic output.

"Despite this extremely fast growth, the near-term GDP impact is likely to be fairly modest given that AI-related investment currently accounts for a very low share of U.S. and global GDP," the authors wrote.

 

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