Goldman Sachs: AI Is Overhyped, Wildly Expensive, and Unreliable
Link📌Summary:
Goldman Sachs, one of the largest investment banks in the world, published a research paper expressing doubts about the economic viability of generative AI. The paper notes that there is "little to show for" the huge spending on generative AI infrastructure and questions whether this spending will ever pay off in terms of AI benefits and returns. The paper suggests that AI optimism is driving large growth in stocks like Nvidia and other S&P 500 companies, but argues that the stock price gains are based on the assumption that generative AI will lead to higher productivity and efficiency. The paper also suggests that companies are acting like generative AI is going to change the world, but that the technology is currently deeply unreliable and may not change much of anything at all.
🎯Key Points:
- Goldman Sachs questions the economic viability of generative AI.
- The bank notes that there is "little to show for" the huge spending on generative AI infrastructure and wonders whether it will ever pay off.
- The paper is based on a series of interviews with Goldman Sachs economists and researchers, MIT professor Daron Acemoglu, and infrastructure experts.
- Goldman Sachs argues that AI optimism is driving large growth in stocks like Nvidia and other S&P 500 companies.
- The bank suggests that the stock price gains are based on the assumption that generative AI will lead to higher productivity and efficiency.
- The paper argues that generative AI is currently deeply unreliable and may not change much of anything at all.
- The bank expresses skepticism about both the cost of generative AI and its ultimate transformative potential.
🔖Keywords:
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