https://www.goldmansachs.com/intelligence/pages/gs-research/gen-ai-too-much-spend-too-little-benefit/report.pdf

Tech giants and beyond are set to spend over $1tn on AI capex in coming years, with so far little to show for it. So, will this large spend ever pay off? MIT’s Daron Acemoglu and GS’ Jim Covello are skeptical, with Acemoglu seeing only limited US economic upside from AI over the next decade and Covello arguing that the technology isn’t designed to solve the complex problems that would justify the costs, which may not decline as many expect. But GS’ Joseph Briggs, Kash Rangan, and Eric Sheridan remain more optimistic about AI’s economic potential and its ability to ultimately generate returns beyond the current “picks and shovels” phase, even if AI’s “killer application” has yet to emerge. And even if it does, we explore whether the current chips shortage (with GS’ Toshiya Hari) and looming power shortage (with Cloverleaf Infrastructure’s Brian Janous) will constrain AI growth. But despite these concerns and constraints, we still see room for the AI theme to run, either because AI starts to deliver on its promise, or because bubbles take a long time to burst.

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