Investment In AI Could Hit $200bln Globally By 2025

August 14, 2023 thehrobserver-hrobserver-AI-Cloud

Investment in Artificial Intelligence (AI) could reach $200 billion globally by 2025 with Generative AI lead in boosting global labour productivity by more than 1 % point a year in the coming decade, said Goldman Sachs Economics Research.

Goldman Sachs economists Joseph Briggs and Devesh Kodnani wrote in a recent note that for large-scale transformation to happen, businesses need to make significant upfront investment in physical, digital, and human capital to acquire and implement new technologies and reshape business processes. 

“Those investments, which could amount to around $200 billion globally by 2025, will probably happen before adoption and efficiency gains start driving major gains in productivity,” they wrote.

According to them, the US is best positioned to take advantage of AI technology and American companies “will likely be relatively early adopters.” 

Countries such as China could also witness the impact on their economies, the investment impact will be smaller and could lag further.

The economists said that AI-related investment could peak as high as 2.5 to 4% of GDP in the US and 1.5 to 2.5% of GDP in other major AI leaders, if growth projections are fully realised. They said that AI investment could approach $100 billion in the US and $200 billion globally by 2025.

“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,” Briggs and Kodnani wrote.

Related Posts