TechFlow news, economists from investment banking giant Goldman Sachs predict that by 2025, investments in artificial intelligence (AI) will account for 4% of U.S. GDP. AI could ultimately have a greater financial impact on the U.S. economy than electricity or personal computers.
In an investment report released on August 1, Goldman Sachs economists Joseph Briggs and Devesh Kodnani forecast that by 2025, AI could attract up to $200 billion in global investment, half of which would be in the United States, thereby boosting its gross domestic product (GDP).
While previous technological booms driven by the introduction of electricity and personal computers contributed a 2% increase in GDP, Goldman Sachs economists estimate that AI's contribution to U.S. GDP could reach as high as 4%, compared to 2.5% in other countries already heavily investing in AI.
Generative AI technology holds substantial economic potential; within a decade of widespread adoption, it could raise global labor productivity by more than one percentage point annually. However, firms need to begin making significant investments soon to acquire and implement new technologies and restructure business processes.
Goldman Sachs also highlighted the growing number of companies mentioning or integrating AI—16% of Russell 3000 index companies referenced AI during earnings call conferences. The bank noted that this figure has risen sharply from less than 1% in 2016, positioning the United States at the forefront of AI innovation.
