Goldman Sachs: AI Is Overhyped, Wildly Expensive, and Unreliable
https://www.404media.co/goldman-sachs-ai-is-overhyped-wildly-expensive-and-unreliable/
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Goldman Sachs: AI Is Overhyped, Wildly Expensive, and Unreliable
https://www.404media.co/goldman-sachs-ai-is-overhyped-wildly-expensive-and-unreliable/
Investment giant Goldman Sachs published a research paper about the economic viability of generative AI which notes that there is “little to show for” the huge amount of spending on generative AI infrastructure and questions “whether this large spend will ever pay off in terms of AI benefits and returns.”
Investment giant Goldman Sachs published a research paper about the economic viability of generative AI which notes that there is “little to show for” the huge amount of spending on generative AI infrastructure and questions “whether this large spend will ever pay off in terms of AI benefits and returns.”
Well, you could have let the bot to parse the text into a threadstorm ;)
Doesnt take all urls.
Goldman Sachs researchers also say that AI optimism is driving large growth in stocks like Nvidia and other S&P 500 companies (the largest companies in the stock market), but say that the stock price gains we’ve seen are based on the assumption that generative AI is going to lead to higher productivity (which necessarily means automation, layoffs, lower labor costs, and higher efficiency). These stock gains are already baked in, Goldman Sachs argues in the paper: “Although the productivity pick-up that AI promises could benefit equities via higher profit growth, we find that stocks often anticipate higher productivity growth before it materializes, raising the risk of overpaying. And using our new long-term return forecasting framework, we find that a very favorable AI scenario may be required for the S&P 500 to deliver above-average returns in the coming decade.” (Ed Zitron also has a thorough writeup of the Goldman Sachs report over at Where's Your Ed At.)