AI Added 'Basically Zero' to US Economic Growth Last Year, Goldman Sachs Says (gizmodo.com)

Goldman Sachs analysts have concluded that, contrary to popular belief, investment in AI had "basically zero" contribution to U.S. GDP growth last year. Despite significant spending by major tech companies like Meta, Amazon, and Google, estimated to reach around $700 billion in 2024 for new data centers and AI models, this investment is largely offset by imports of AI-related equipment, primarily from Taiwan and Korea. Goldman Sachs Chief Economist Jan Hatzius highlighted that the narrative of AI propelling economic growth is misleading, citing that much of the presumed economic benefit is not captured in U.S. GDP figures. This revelation holds considerable significance for the AI and ML community, raising questions about the actual impact of AI investments on the economy. It challenges the assumptions used by policymakers and business leaders advocating for minimal regulations, like former President Trump, who argues that national growth is being fostered by AI. Moreover, a recent survey of 6,000 global executives indicates that while 70% of firms are leveraging AI, about 80% reported no noticeable improvement in productivity or employment, suggesting that the anticipated economic benefits of AI may be overestimated, prompting a need for more rigorous analysis and understanding of AI's actual contributions.