{"id":45931,"date":"2023-08-08T11:43:15","date_gmt":"2023-08-08T15:43:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/goldman-sees-1-5-trillion-flowing-to-ai-heres-where-to-invest\/"},"modified":"2023-08-08T11:43:17","modified_gmt":"2023-08-08T15:43:17","slug":"goldman-sees-1-5-trillion-flowing-to-ai-heres-where-to-invest","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=45931","title":{"rendered":"Goldman Sees $1.5 Trillion Flowing To AI. Here\u2019s Where To Invest"},"content":{"rendered":"
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The economists at Goldman Sachs have concluded that more than a trillion dollars could be invested in generative artificial intelligence over the next decade, according to Goldman Sachs Economics Research.<\/p>\n

To get your share of that money, you can start a company, invest in a startup, or buy stock in a publicly-traded company likely to benefit most from Generative AI.<\/p>\n

Companies likely to enjoy higher revenues from Generative AI \u2014 such as Nvidia and Microsoft
\n MSFT
\n <\/fbs-ticker> \u2014 are pretty well known. Their stock prices could already reflect optimistic assumptions about how much Generative AI will improve their business.<\/p>\n

There could be better investment opportunities in less well-known stages of the Generative AI ecosystem. For example, investors may wish to consider shares of companies \u2014 such as Accenture
\n ACN
\n <\/fbs-ticker>, Snowflake, and ServiceNow
\n NOW
\n <\/fbs-ticker> \u2014 which have introduced Generative AI-related products and services \u2014 but have not quantified their future revenues.<\/p>\n

This uncertainty could provide considerable upside if Generative AI helps the companies grow faster than investors expect.<\/p>\n

Goldman Sachs Sees Significant Investment In Generative AI<\/h2>\n

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Significant capital will flow into Generative AI. According to Goldman Sachs Economics Research, by 2025, the capital investment could total $200 billion. By 2033 \u2014 combining Goldman Sachs\u2019 assumptions about Generative AI investment as a percent of GDP and a Congressional Budget Office GDP forecast \u2014 I estimate Generative AI investment in the U.S. could top $1.5 trillion by 2033.<\/p>\n

Goldman wrote it \u201clooked at previous world-changing innovations Innovations in electricity and personal computers\u201d which sparked investment as high as \u201c2% of U.S. GDP as the technologies were adopted into the broader economy.\u201d<\/p>\n

By enhancing worker productivity, Goldman sees Generative AI eventually having an even bigger impact. As Joseph Briggs, a Goldman Sachs Economist, explained in an August 7 interview, \u201cThe return on investment in Generative AI will come mostly from freeing up the time of workers to perform more productive activity, and less from displacing workers.\u201d<\/p>\n

Generative AI investment could peak at a range between $980 billion to $1.57 trillion by 2033. How so? According to the Congressional Budget Office, U.S. GDP is forecast to reach $39.2 trillion by 2033. Goldman Sachs envisions AI-related investment could to peak \u201cas high as 2.5 to 4% of GDP in the U.S.\u201d in the next decade.<\/p>\n

Why does Goldman see Generative AI as having the world-changing potential of the PC or the electric motor? As Briggs told me, there are three reasons:<\/p>\n