Goldman Strategists See Potential Profit Boom From AI

Strategists at Goldman Sachs Group Inc. believe that artificial intelligence can become a solid foundation for long-term profit growth in the United States.

Goldman Strategists See Potential Profit Boom From AI


At the same time, experts note that currently there is no certainty and a clear understanding of exactly what the impact of AI on the life of global human civilization will be in terms of the effect of transformation and the scale of its spread.

Artificial intelligence can increase the net margin by almost 400 basis points in a decade. The corresponding potential scenario is described in a note by strategists led by Ben Snyder. This version of events is a positive situation against the background of negative economic circumstances, including a potential recession, inflation, increased inventory levels, and rising interest rates.

Strategists recognize that the unfavorable economic situation, which is a complex of factors, can adjust their forecast and even make it radically opposite to the original version.

The launch of OpenAI ChatGPT at the end of 2022 was phenomenally successful. Against the background of the incredible popularity of the chatbot based on artificial intelligence, many investors have actively paid attention to the field of AI, directing huge funding flows to its development. Active investment concerns not only artificial intelligence itself but also everything related to it. Many companies are implementing technology solutions that can provide an acceptable level of competitiveness against the background of the spread of the offer from OpenAI

During the financial results reports for the first quarter of this year, American and European companies mentioned AI about 1,600 times. This figure is a record and indicates that advanced technologies are a significant factor of influence and a tool for transforming the space of human activity.

The Goldman team draws attention to the fact that the degree of influence of artificial intelligence in the future is extremely difficult to determine with maximum accuracy since in this case there are many circumstances associated with its development and factors influencing the technology sector, primarily regulation.

Experts talk about uncertainty about predicting the effect of AI on economic processes and indicators. They also note that the final reaction of state policy to the introduction of a new generation of technology is still unclear. For this reason, it is not possible to accurately predict the long-term impact of artificial intelligence on corporate profits.

At the end of March, Goldman strategists recommended investors buy growing US stocks with high margins, even taking into account different opinions of the securities market and interest rate policy about the risk of recession.

As we have reported earlier, Goldman, MSCI and Coin Metrics Joined to Create Digital Asset Classification System.

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.