AI could power US economy as investment hits $200B by 2025: Goldman Sachs

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AI could power the US economy as investment in the sector is poised to hit $200 billion by 2025, a Goldman Sachs says

Artificial intelligence could end up powering a bigger share of the US economy, as investment in the sector is set to balloon in the coming years, according to Goldman Sachs.

The bank's economists predicted AI-related investments could hit $100 billion in the US by 2025, while global AI-related investments hit $200 billion that same year., with the virality of ChatGPT gripping the attention of Wall Street investors. This year, 16% of Russell 3000 firms have mentioned AI in their earnings calls, the bank said, up from 1% of firms that mentioned AI prior to 2016.

"Our economists' previous research has shown that such mentions tend to predict increases in company-level capital spending," the bank said in aInvestment in the AI sector could account for up to 4% of GDP in the US by 2025 and 2.5% of GDP in other countries that are leading AI development, the bank estimated.

That's about double the impact of electricity and personal computers, which resulted in an investment boom that amounted to 2% of US GDP. Goldman Sachs has remained bullish on artificial intelligence, despite fears from other Wall Street analysts that AI could be fueling aGenerative AI could cause labor productivity to rise 1% in the decade following widespread use, the bank's economists previously estimated, which alone could

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