Goldman Sachs Research suggests that advancements in generative AI could usher in a new economic era, potentially boosting global GDP by 7% ($7 trillion) and increasing productivity by 1.5% over a decade. This revolutionary AI, which can produce content resembling human output, has vast economic implications. Though it might place around 300 million full-time jobs at risk of automation, history shows technological innovations often lead to the emergence of new job roles. A cited study reveals that 60% of current job roles did not exist in 1940, emphasizing the tech-driven creation of new positions over time.
Furthermore, AI's impact is set to transform industries, notably enterprise software, healthcare, and finance. Goldman Sachs sees a new wave of AI innovation, especially as tech giants introduce their AI solutions. Kash Rangan from Goldman Sachs Research highlights AI's potential in enhancing business operations, accelerating drug discoveries, and fast-tracking software development. With AI integration, software firms can explore growth via new releases, premium charges, and increasing prices for AI-augmented products. The market potential for generative AI software is projected at $150 billion.
The broader application of AI will see benefits spanning from office productivity boosts to enhanced healthcare diagnostics and cyber fraud detection. While the complete influence of generative AI remains to be seen, early indicators suggest a transformative impact on the global economy.
Breakthroughs in generative artificial intelligence have the potential to bring about sweeping changes to the global economy, according to Goldman Sachs Research. As tools using advances in natural language processing work their way into businesses and society, they could drive a 7% (or almost $7 trillion) increase in global GDP and lift productivity growth by 1.5 percentage points over a 10-year period.
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