African Union greenlights AI adoption across member states

August 11, 2024 Coin Telegraph

AI needs a killer app to prove it’s not a bubble — Goldman Sachs, MIT

June 30, 2024 Coin Telegraph

AI boom to beat electricity and PCs, $200B investment by 2025: Goldman Sachs

August 3, 2023 Coin Telegraph

AI boom to beat electricity and PCs, 0B investment by 2025: Goldman Sachs

Economists from Goldman Sachs predict that AI investment could account for up to 4% of GDP in the United States by 2025.

Artificial intelligence could eventually have a bigger financial impact on the American economy than electricity and personal computers, according to economists at investment banking giant Goldman Sachs.

In an Aug. 1 investment report, Goldman Sachs economists Joseph Briggs and Devesh Kodnani predicted that AI could pull as much as $200 billion in global investments by 2025 — with half of that in the United States — boosting its gross domestic product (GDP).

While past tech booms spurred by the introduction of electricity and PCs saw GDP grow 2%, Goldman economists estimated that AI could account for up to 4% of GDP in the United States and 2.5% in other nations that have already begun investing heavily in the technology.

Projection of AI investment growth globally and in the U.S., China over next three years. Source: Goldman Sachs

Goldman attributed much of the expected gains to the rapid advancements being made in generative AI. The most notable example of generative AI technology is OpenAI’s chatbot ChatGPT, but the sub-sector also includes tools such as image creation software Midourney, and text-to-speech generator Eleven Labs.

"Generative AI has enormous economic potential and could boost global labor productivity by more than 1 percentage point a year in the decade following widespread usage.”

But these productive benefits of generative AI come with a cost, namely that businesses will need to start investing heavily, and soon.

"For large-scale transformation to happen, businesses will need to make significant upfront investment in physical, digital, and human capital to acquire and implement new technologies and reshape business processes," read the report.

Goldman also noted the number of companies that have mentioned or integrated AI, with 16% of Russell 3000 companies mentioning AI in their earnings calls. Considering this figure is up significantly from less than 1% in 2016, the bank said this puts America on the front foot when it comes to innovation in AI.

"The U.S., meanwhile, is positioned as the market leader in AI technology, and American companies will likely be relatively early adopters."

The economists noted that while the timing of the AI investment cycle is hard to predict, current business surveys suggest that AI will begin to have its most significant investment impact after 2025.

AI Eye: AI’s trained on AI content go MAD, is Threads a loss leader for AI data?

BlackRock lauds AI as ‘mega force’ to drive returns

June 29, 2023 Coin Telegraph

ai investment

AI could prove to be a boon for investors looking for gains in today's “unusual” market.

Global investment titan BlackRock, which manages some $10 trillion in assets, has declared artificial intelligence a “mega force” that could create significant returns for investors in today’s “unusual” market.

In its mid-year outlook report, the BlackRock Investment Institute detailed their thesis for increased investment in AI — pointing to multiple “disruptive” themes that could see the sector grow rapidly over the coming years.

*S&P market cap vs relative performance from 1990. Source: BlackRock.*

The report drew special attention to the fact that gains in the S&P 500 — the index that tracks the 500 largest companies in the United States — have become increasingly concentrated in a handful of tech stocks. The firm says investment in AI is a good way to capitalize on this concentration.

"We think this unusual equity market shows a mega force like AI can be a big driver of returns even when the macro environment is not your friend."

To BlackRock’s investment team, the most obvious “benefit” of AI lies in automation. While they admitted white-collar jobs are at an “increased risk” of being automated away, it said the resulting cost savings could significantly boost profit margins, especially for companies with high staff costs and an abundance of easily-automated tasks.

The team added that the nascent tech could prove to be a boon for companies that are currently sitting on a “gold mine” of proprietary data — with AI-powered tools allowing firms to leverage dormant information into “innovative” new models.

The report also listed the global push towards low-carbon economies, aging populations, and a rapidly-evolving financial system as key drivers of growth in the coming decade.

BlackRock isn’t alone in giving more airtime to AI. In a June 28 tweet, Matt Huang, the CEO of crypto investment firm Paradigm, said the rapid and varying developments in field of AI are simply “too interesting to ignore."

Paradigm has never been more dedicated to crypto.

When Fred and I started Paradigm five years ago, there was no master plan. What we had was a shared curiosity for the future, deep conviction in crypto, and a desire to advance the frontier of what’s possible.

Our best decision…
— Matt Huang (@matthuang) June 27, 2023

Still, not all commentators are convinced by a bullish AI investment thesis.

Macro-finance commentator @Financelot told his 90,000 followers on Twitter that the AI boom — which has seen shares in GPU-manufacturer Nvidia skyrocket by more than 180% in six months — is actually being fueled largely by demand for specific AI-focused computing chips.

The AI narrative was used to mask the true source of chip demand coming from China front-running U.S. export restrictions. That's why chips were hot but memory (DRAM & NAND) remained in decline.

Once the U.S. passes the restrictions this whole "AI" narrative implodes overnight. https://t.co/cSvHVTinRC
— Financelot (@FinanceLancelot) June 29, 2023

In his view, once the U.S. implements export restrictions on these chips, the share prices of AI-related companies will falter.

While there’s bullishness for AI, recent weeks has seen the investment giant has turn its gaze to Bitcoin. On June 15 the firm submitted an application to the Securities and Exchange Commission (SEC) for a spot Bitcoin Exchange Traded Fund (ETF).

If the application is successful, it will be the first spot Bitcoin trust product to be approved by the regulator. Senior investment analysts from bloomberg have pinned Blackrock’s chance of an approval at 50%.

AI Eye: Is AI a nuke-level threat? Why AI fields all advance at once, dumb pic puns

ai investment

Share this video