Goldman Sachs predicts $200 billion in AI investments by 2025

Goldman Sachs predicts $200 billion in AI investments by 2025

New York, 8/4/2023

According to a forecast by Goldman Sachs Economics Research, global AI investment could reach $200 billion by 2025, having a bigger impact than electricity and PCs – if GDP is used as a yardstick.

According to the report, generative AI in particular could increase labor productivity by over a percentage point annually in the decade after its widespread adoption.

To achieve transformation, organizations require significant upfront investments in physical, digital, and human capital.
Half of the expected investments of 200 billion US dollars by 2025 will be made in the USA.

This could potentially contribute up to 4% to US GDP and 2.5% to other AI investing countries.

AI investments are expected to focus on four key business segments: companies developing models, infrastructure providers such as data centers, firms developing AI-enabled software, and enterprise end users.

While AI adoption is still in its early stages, surveys show that most CEOs expect to adopt AI within three to ten years, suggesting a significant impact on the US economy between 2025 and 2030.