AI investment forecast to approach $200 billion globally by 2025

     AI has the chance to increase global labor productivity by 1% point a year. For this to happen, major upfront investments are needed to happen through digital, physical, and human capital. These investments have the chance to reach 200 billion by 2025. In addition, it is predicted that AI investment could peak of up to 4% of GDP in the U.S. and up to 2.5% in other major AI leading countries. Even though AI investment is hard to predict, business surveys predict that through the second half of the current decade that AI will become even more impactful on investment. Even though AI investment is said to reach 100 billion in the U.S. and 200 billion globally the impact of AI investment right now is far from that. It currently accounts for little shares of GDP. The reasoning behind this is that AI investment currently is only focused on model development, but the reason such predictions of big increases in AI investment is because of the fact that AI is going to push for substantially larger hardware and software in the future. In a survey in 2021, it was reported that, only 4% of businesses use AI, and that a very few expect that AI will affect their labor needs in the next one to three years. However, a significant majority of companies do expect that they will adopt AI in the next 3-10 years. Overall, with all of this being true it can be concluded and predicted that AI adoption will have a major impact on economies, specifically the U.S., between 2025-2030. This makes the crazy statement that AI investment is forecasted to each 200 billion globally not as crazy.

August 1, 2023. Goldman Sachs .AI investment forecast to approach $200 billion globally by 2025. AI investment forecast to approach $200 billion globally by 2025 (goldmansachs.com).