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Goldman Research Head Skeptical on AI Returns Despite Massive Spend


Goldman Sachs' head of global equity research Jim Covello has expressed skepticism about the potential returns from AI technology, despite an estimated $1 trillion in planned industry investment over the coming years. In a recent report [PDF], Covello argued that AI applications must solve complex, ...

Goldman Sachs' head of global equity research Jim Covello has expressed skepticism about the potential returns from AI technology, despite an estimated $1 trillion in planned industry investment over the coming years. In a recent report[PDF], Covello argued that AI applications must solve complex, high-value problems to justify their substantial costs, which he believes the technology is not currently designed to do. The Goldman executive also expressed doubt about AI's ability to boost company valuations, arguing that efficiency gains would likely be competed away and that the path to revenue growth remains unclear.

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