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Goldman Sachs says the return on investment for AI might be disappointing
Tech companies are spending big on AI, but so far have little to show for it. A Goldman Sachs report gives AI investments mixed reviews.
"AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn't designed to do," Jim Covello, the head of Global Equity Research at Goldman Sachs, said in the report. And the human brain is 10,000x more effective per unit of power in performing cognitive tasks vs. generative AI," said Kash Rangan, a senior equity research analyst at Goldman Sachs. Eric Sheridan, another senior equity research analyst at the company, compared it to the tepid initial reactions to technological developments like the iPhone and Uber.
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