Posted by: John Phoenix
Consequently, we might be heading towards a dot-com bubble 2.0.
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Goldman Sachs: AI Has Required Huge Investments but Has Yet to Pay Off – Will It Ever?
One of the largest banks in the world is sounding the alarm for a potential dot-com bubble 2.0. Goldman Sachs believes that firms related to AI now occupy nearly 30% of the US stock market. However, even in the most optimistic scenarios, AI is expected to replace only 5% of workers over the next 10 years, equivalent to just 0.9% of GDP.
As evidence, Goldman Sachs points to statistics showing that, despite years of AI implementation, only 1 in 10 firms uses AI on average. And even then, the extent of its usage is uncertain. The hype around neural networks might turn out to be just a fad.