AI Revolution Beyond Tech: Goldman Sachs Sees Productivity Surge

The AI industry has grown consistently in the past five years. Tech giants across the globe have leveraged a huge segment of their business over artificial intelligence. These firms have long anticipated to generate good revenue from AI going forward. Additionally, Goldman Sachs analyst expects AI to be fruitful and efficient for firms that don’t necessarily deal with technology in the next decade.

AI to boost productivity for non-tech firms

Goldman Sachs strategist Peter Oppenheimer in an interview with Yahoo Finance said that AI will expand its roots in non-technological sectors in the future. Peter believes that non-tech firms will begin to use these technologies to increase productivity and spur faster growth in the upcoming decade.

Peter says that investors who typically invest in stock markets should focus less on near-term processes. He adds that investors should rather focus on important longer-term structural issues.  Adding on to this, he says that a longer-term factor could be the impact of AI and how different firms generate money out of it. However, he also warns about artificial intelligence’s negative prospects. Peter adds that AI will result in some job displacement with a greater goal of boosting productivity.

According to a new analysis by Bloomberg Intelligence, the generative AI market is expected to develop rapidly, reaching $1.3 trillion over the next 10 years from a market size of around $40 billion in 2022. This is likely because of the entry of consumer generative AI programs like Google’s Bard and OpenAI’s ChatGPT.

U.S. elections to make stocks volatile in upcoming months

This year is going to mark a change shift in the realm of financial markets. With major elections scheduled across the globe, the global trade and economic markets are still hanging in the middle to see what the outcome of the voting across the world is going to be.

Peter in the same interview says that equity markets currently are not facing severe volatility. But the backdrop of the upcoming U.S. elections will make the market more volatile in the future.

Peter also pointed out that global trade is undergoing a significant shift. The environment is now less focused on the expansion of world trade. Rather economies across the world are prioritizing domestic trade and self-production. In such a context, domestic productivity is going to be an important measure for various economies in the future.

Continued growth of AI

According to Forbes, By 2030, artificial intelligence is predicted to boost the world economy by $15.7 trillion. This will see AI surpass the combined production of China and India today. China is expected to benefit the most from AI, with its GDP expected to climb by 26% by 2030, and North America to benefit by 14.5%. Together, these gains will equal $10.7 trillion, or over 70% of the global economic impact. The market growth will significantly be impacted by continuous technological breakthroughs including chip market solutions, wearable technology, self-driving automobiles, and automated medical procedures.