Artificial Intelligence: An X-factor in a new investment regime
Analyzing the potential long-term economic boost from AI
- After studying the growth of past transformational technologies, we believe artificial intelligence (AI) could be a multiyear investment theme and may lead to higher productivity over time, making labor and capital more efficient, facilitating more innovation, increasing consumer buying power, and supporting corporate profit margins.
- Adoption rates for AI and possible productivity gains related to it are likely to vary by sector—more heavily impacting service segments, for example—and any broad contributions to overall economic productivity could be years away.
- However, AI could also pose significant economic and societal costs that may constrain the spread of this technology.
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