Artificial Intelligence (AI) systems already greatly impact our lives.
The scale, depth and speed of change posed by AI advancements combined with the level of macroeconomic, sector-specific and stock specific AI debates remain incredibly high. This has accelerated, in particular, with the roll-out of ChatGPT. The combination of more advanced semiconductor technologies, more pervasive and faster networks, and significant expansion of cloud-based data centers enables a new wave of data technologies.
Based on the recent advancements and the significant increases in investment, we should expect AI technology to become even more powerful in the years and decades to come. This may generate tailwinds for the companies developing the hardware, software and infrastructure needed to drive further automation and AI adoption in the wider economy. Moreover, higher fiscal spending within the sector supports the theme even further, as governments are looking to build more resilient supply chains for components critical to strategic technology needs (e.g. CHIPS Act).
According to Grand View Research, the global artificial intelligence market size was valued USD 136.55bn in 2022 and is projected to expand to a compound annual growth rate of 37.3% from 2023 to 2030. Goldman Sachs even estimates that it could drive gains in productivity that could raise global GDP by 7 % over a ten-year period.