①Technology companies are actively pursuing AI technology and investing heavily in it; ②However, a recent report by Goldman Sachs questions the potential return on investment in AI for technology companies; ③Goldman Sachs' Jim Covello pointed out that he does not believe that the cost of AI will significantly decrease over time.
Tech companies are actively pursuing advances in artificial intelligence, but a recent Goldman Sachs report has questioned the potential returns of investing in AI. The report emphasizes the high cost associated with AI technology, including data centers, power grids, and AI chips, and predicts that tech companies will invest over $1 trillion in AI. However, can these costs be proven through returns? Goldman Sachs expressed concern about the potential returns on this massive investment.
However, can these costs be proven through returns? Goldman Sachs expressed concern about the potential returns on this massive investment. The report emphasizes the high cost associated with AI technology, including data centers, power grids, and AI chips, and predicts that tech companies will invest over $1 trillion in AI.
However, can these costs be proven through returns? Goldman Sachs expressed concern about the potential returns on this massive investment.
Different views on investment return
Jim Covello, the Global Equity Research Director of Goldman Sachs, said in the report,"AI technology is very expensive. To prove that these costs are reasonable, this technology must be able to solve complex problems, which is not its original purpose of design."
Covello also criticized the tech industry's assumption that the cost of AI will decrease significantly over time.
Covello added,"The starting point of AI costs is also high. Even if the cost decreases, these companies must significantly reduce costs in order to make AI automated tasks affordable. Based on our experience, even the most basic summary tasks performed by AI often produce unrecognizable and meaningless results."
Despite Covello's skepticism, other analysts at Goldman Sachs are more optimistic.
Senior Equity Research Analyst Kash Rangan believes,"The cost equation for this technology will indeed change, just as it has in the past."
Goldman Sachs' other senior analyst Eric Sheridan compared people's initial reactions to AI with their reactions to the iPhone, Uber, and Airbnb when they first appeared, and pointed out that as time goes by, people will also have similar acceptance of AI.
Sheridan said,"Before smartphones, Uber, or Airbnb, people didn't think they needed them. But today, the progress of these technologies seems unimaginable. The same is almost certainly true for generative AI technology."
Editor/Emily