Goldman Sachs says the real economy is not yet reflecting the sweeping narratives surrounding artificial intelligence.
In a new installment of the bank’s Breaks of the Game podcast, Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, says corporate earnings data paints a more measured picture.
According to Pasquariello, only a tiny fraction of US companies have tied AI to earnings growth.
“There are a lot of people with very strong views about what the future is going to look like. About half of S&P companies when reporting Q4 earnings, they talked about AI in the quest for efficiency and productivity.
Only 10% of companies specifically attached that to a use case, but only 1% of companies actually attached it to earnings growth.”
Pasquariello says the gap goes to show that AI is still in the very early stages of its cycle.
“And so in the real world, you just realize it is still so early. And there’s so much that is not known. I tried to resist the idea perhaps at the edge is the dystopian versus the utopian view of all this because we just don’t know.”
Pasquariello’s view comes following a viral Citrini AI report, where the authors laid out an AI bullish scenario that drove the US unemployment rate to 10.2%. According to Citrini Research, it is within the realm of possibility for AI to exceed expectations that US firms slash headcount to invest the freed up funds in artificial intelligence.
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