As power needs ramp up, the efficiency gains of data center infrastructure are beginning to slow, according to Davenport, a US utilities research analyst in Goldman Sachs Research. “Growth from AI, broader data demand, and a deceleration of power efficiency gains is leading to a power surge from data centers,” she writes.| www.goldmansachs.com
The promise of generative AI technology to transform companies, industries, and societies is leading tech giants and beyond to spend an estimated ~$1tn on capex in coming years, including significant investments in data centers, chips, other AI infrastructure, and the power grid. But this spending has little to show for it so far. Whether this large spend will ever pay off in terms of AI benefits and returns, and the implications for economies, companies, and markets if it does—or if it doe...| www.goldmansachs.com
The Goldman Sachs Group, Inc. is a leading global investment banking, securities, and asset and wealth management firm that provides a wide range of financial services.| www.goldmansachs.com
How much can AI improve productivity?| www.goldmansachs.com
At the same time, policy responses like higher tax rates could cut into an AI-assisted increase in earnings, according to Goldman Sachs Research. Our economists expect some jobs to be lost due to AI adoption. Meanwhile, U.S. corporate profits as a share of GDP are at an elevated level relative to history, while wages as a share of GDP remain near a historical low. And even though our economists also predict — and history suggests — that many workers who are displaced by AI automation will...| www.goldmansachs.com
Industry expectations for autonomous vehicles range from optimism about imminent breakthroughs to pessimism that self-driving cars will ever hit the road on a wide scale. | www.goldmansachs.com
Which companies will benefit the most from the ongoing growth of the creator economy? The platforms that are best positioned to attract both influential creators and a larger share of the total spending are those that will offer multiple forms of monetization, according to Goldman Sachs Research. But the analysts also cite six key enablers for creating a “flywheel effect” in which small gains build on each other over time and create further growth momentum:| www.goldmansachs.com
Innovations in electricity and personal computers unleashed investment booms of as much as 2% of U.S. GDP as the technologies were adopted into the broader economy. Now, investment in artificial intelligence is ramping up quickly and could eventually have an even bigger impact on GDP, according to Goldman Sachs Economics Research. | www.goldmansachs.com
On average, a ChatGPT query needs nearly 10 times as much electricity to process as a Google search. In that difference lies a coming sea change in how the US, Europe, and the world at large will consume power — and how much that will cost. | www.goldmansachs.com
At the same time, advances in AI are expected to have far-reaching implications for the global enterprise software, healthcare and financial services industries, according to a separate report from Goldman Sachs Research. With well-known tech giants poised to roll out their own generative AI tools, the enterprise software industry appears to be embarking on the next wave of innovation, after the development of the internet, mobile and cloud computing transformed the ways we operate as a society.| www.goldmansachs.com