Bank of America forecast: AI market will grow to $900 billion by 20267. March 2023
Bank of America forecast: AI market will grow to $900 billion by 2026
New York, 3/7/2023
Bank of America analysts predicted that the global AI market could be worth $900 billion by 2026. In a note sent to clients this week, the strategists said that AI is on the verge of an “iPhone moment” as big language models like ChatGPT allow people “to fully embrace the data revolution.”
The analysts also wrote that if data is the “new oil,” then AI technology is “the new electricity.” Technology is evolving exponentially, they noted, citing ChatGPT’s growth to 1 million users in just five days and an adoption rate equivalent to “3x TikTok and 10x Instagram.”
The strategists said now is a “defining moment” for AI as it moves toward mass adoption, comparing the time period to “the internet in the ’90s.”
They shared four reasons why AI will have a major impact: mass adoption, “warp-speed” development, data democratization, and a plethora of commercial exploitation opportunities.
Ultimately, BofA believes AI’s ability to harness data could boost the global economy to as much as $15.7 trillion by 2030.
In a separate report to clients yesterday, BofA listed 15 stocks that it believes will benefit from the AI revolution. These included Alphabet, Microsoft, Nvidia, Meta, Apple, Baidu, Adobe and Palantir Technologies.