Global investment in AI could near $200 billion by 2025: Goldman Sachs
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A new economic analysis shows that global businesses’ investment in artificial intelligence (AI) technologies could approach a total of $200 billion by 2025, according to Goldman Sachs economists.
Generative AI has enormous potential to boost labor productivity and boost economic output as it becomes widely adopted by businesses and society at large. A report by Goldman Sachs economists Joseph Briggs and Devesh Kodnani projects that global private investment in AI is forecasted to rise dramatically over the next three years from an estimated $91.9 billion in 2022 to over $158.4 billion in 2025 — a 72% increase in a three-year span.
They noted that the rise in AI-related investment comes from a relatively low starting point. Global AI investment — as gauged by revenue to Microsoft Azure, Nvidia, Google Cloud and Amazon Web Services — trended up from nearly $3.2 billion globally in 2013 to about $25.5 billion in 2017 and roughly $48.2 billion in 2020. It then jumped to $93.5 billion in 2021 before flattening last year ahead of a projected rebound.
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Global private investment in artificial intelligence could rise to $200 billion by 2025 according to an analysis by Goldman Sachs. (iStock / iStock)
The Goldman Sachs report forecasts steady upward growth in global AI investment over the next few years, reaching $110.2 billion in 2023 before rising over $20 billion annually to reach the forecasted $158.4 billion mark in 2025.
Private investment in AI within the U.S. accounted for more than half of global investment in 2022, coming in at $47.4
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