Bank of America Predicts Significant Economic Impact of AI

Bank of America predicts a significant economic effect as a result of the active use of artificial intelligence in various industries.

Bank of America Predicts Significant Economic Impact of AI

Experts of this financial institution, which is one of the largest organizations in the American banking sector, believe that by the end of the current decade, the financial result from the integration of machine intelligence into various spheres of activity can reach an impressive $15.7 trillion.

A technology of the new generation, on the basis of which many tools are being created, will stimulate the growth of the global economy. The corresponding opinion is contained in a note to investors, the authors of which are Bank of America analysts led by Alkesh Shah. Experts also believe that artificial intelligence will affect all sectors of the global economic system.

Analysts say that the integration of machine intelligence at the corporate level, which means the use of AI within internal workflows, can potentially increase operating profitability by 250 basis points. In monetary terms, this growth level is approximately $65 billion. According to analysts of one of the largest financial institutions in the United States, this result can be achieved within the next five years.

Also, experts in their note drew attention to the rapid increase in the number of apps based on artificial intelligence, mentioning as an example the world’s most popular chatbot ChatGPT, the number of users of which, just two months after the launch of the digital product, was fixed at around 100 million people. This milestone was overcome by the aforementioned brainchild of OpenAI much faster than popular social media platforms, including TikTok, Instagram, and Twitter.

Analysts noted that currently, artificial intelligence continues to be at an early stage of development. They said that the new basic AI configurations are characterized as immature. Also, according to them, apps based on a new generation of technology are just beginning. This formulation probably also means that digital products that AI is integrated into are at an early stage of development, as is their driving force.

According to analysts, investments in machine intelligence can potentially destroy any area over the next 5-10 years. Probably, in this case, a radical transformation of industries is implied, significantly changing their internal content and functional features compared to the current version of these spheres.

Bank of America also predicts that in the coming years, many companies will integrate artificial intelligence technologies into their processes. Analysts are convinced that this strategy of introducing advanced technology will have results in the form of increased efficiency and revenue growth. The active use of AI has a positive effect on the competitiveness of the business. Some companies earn money through paid updates of machine intelligence.

Analysts are convinced that from a global perspective, artificial intelligence will be introduced into literally every sector of the economy. In their opinion, the use of advanced technology will improve financial performance. They also believe that at the moment there is no full understanding of the potential of machine intelligence.

An August Goldman Sachs Economics Research report also predicted that AI would have a widespread economic impact. Analysts of this organization believe that by 2025 the total volume of investments in AI will reach $200 billion. The report also notes that innovations in the electric power industry and personal computers have caused an investment boom of up to 2% of the GDP of the United States. Currently, there is an increase in financial injections into AI, and it is likely that the economic effect of this technology will exceed the scale of the impact of the mentioned innovations.

As we have reported earlier, Bank of America Uses AI to Train New Hires.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.