Goldman Sachs study quantifies crowding-out effect of the AI boom
A new Goldman Sachs note finds that massive AI investment, projected at $600 billion this year, is displacing other tech investment and construction while raising corporate borrowing costs.
- Goldman Sachs economists estimate AI investment will reach $600 billion this year, accounting for 2% of GDP.
- AI investment comprises 10% of business fixed investment and 15% of equipment investment.
- Crowding out manifests as displaced tech spending and higher corporate borrowing costs.