The article questions whether this large expenditure will eventually result in benefits and returns from AI. It also explores the potential implications for economies, companies, and markets if these investments pay off or if they do not. The article, titled "Gen AI: Too much spend, too little benefit?" is a research piece from Goldman Sachs and was published on June 25, 2024.
Key takeaways:
- The potential of generative AI technology is leading to significant investments by tech giants, estimated to be around $1tn in the coming years.
- These investments are being made in data centers, chips, other AI infrastructure, and the power grid.
- Despite the large spending, there is little to show for it so far, raising questions about whether the investment will ever pay off in terms of AI benefits and returns.
- The implications of this spending on economies, companies, and markets is a major concern.