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According to Goldman Sachs Research, investment in artificial intelligence (AI) is heating up rapidly and could have a greater impact on global GDP. Economists Joseph Briggs and Devesh Kodnani note in a report that generative AI has huge economic potential and is expected to increase global labor productivity by more than 1 percentage point per year after widespread adoption over the next decade. However, to achieve this large-scale transformation, companies need significant upfront investments to acquire and implement new technologies and reshape business processes.
The report also notes that these investments will be made earlier than the efficiency gains and productivity gains brought about by generative AI technologies. It is estimated that by 2025, the scale of global investment in generative AI may reach about $200 billion. This means that in the next few years, the field of artificial intelligence will attract more and more investment, driving the development and application of the technology.
Generative AI is a creative and innovative AI technology that can generate new content, ideas, and scenarios from large amounts of data. It has a wide range of application prospects in many fields, including healthcare, finance, manufacturing, agriculture, etc. By using generative AI, companies can increase productivity, reduce costs, and even create entirely new business models.
However, to realize these potential benefits, businesses need to make large-scale investments. These investments will involve physical capital, such as the purchase of advanced equipment and technology, digital capital, such as building and maintaining large-scale data platforms and cloud computing infrastructure, and human capital, such as training employees and hiring professionals. These investments will help companies acquire and apply generative AI technologies that will reshape business processes and improve productivity and competitiveness.
——There are fewer enterprises distributed in the computing power layer and the middle layer
At present, the distribution of AIGC enterprises in the next level market according to the industrial chain under the technical architecture is as follows: 84% of enterprises are deployed in the algorithm layer, 11% of enterprises are in the computing power layer, and only 5% of enterprises are deployed in the platform layer. It can be seen that the algorithm layer is a highly competitive field, while the computing power layer has a relatively small degree of competition. In addition, the middle-layer enterprises under the algorithm layer account for only 15% of the total, and the distribution of middle-layer enterprises is relatively scarce compared to other subdivisions of the algorithm layer. However, the potential market size of middle-tier companies is huge because they can empower a wide range of industries in terms of technology and content generation.
——The middle layer has low input costs and good income returns
From the perspective of input cost and return, the input cost of the middle layer and the application layer is low, and the commercial return is better. A higher return on investment ratio also attracts companies and large investments.
——China's AIGC industry investment and financing is still in its infancy
According to the analysis of investment rounds in the AIGC industry, the current financing rounds in the industry are still mainly concentrated in the early stage, while the D round and subsequent financing are relatively small. Although in 2021, the AIGC industry has seen an increase in financing time and amount, according to the round analysis, these funds are mainly concentrated in the stage of Series C and beyond. This shows that many start-ups have entered the industry and gained the attention of early-stage investment institutions.
Although these investments will take a long time and money, the Goldman Sachs Research report believes that these investments will bring long-term returns. With the increase in global investment in generative AI, AI technology is expected to be more widely used in various industries, bringing a greater impetus to the global economy.
Overall, Goldman Sachs predicts that global investment in generative AI could approach $200 billion by 2025. This forecast suggests that investment in AI will continue to increase and will have a significant impact on the global economy in the coming years. Businesses need to actively invest and adopt new technologies to remain competitive in the fierce market and achieve greater productivity and efficiency.
Foresight Economist APP Information Group
For more information about the research and analysis of this industry, please refer to the "China AIGC Industry Development Prospect Forecast and Investment Strategic Planning Analysis Report" by the Prospective Industry Research Institute
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