The buzz around artificial intelligence (AI) has been growing, and it shows in corporate America. An analysis of earnings conference calls for the first quarter of 2023 reveals a significant uptick in the number of S&P 500 companies discussing AI. During this period, 110 companies mentioned AI, a notable increase from the five-year average of 57 and the 10-year average of 34, according to an analysis by FactSet.
So says Frank Holmes in an article which has been edited and severely abridged for posting on munKNEE.com going on to say:
Along those same lines, the development of real-time, 3D virtual applications by companies like Meta, Roblox and Apple is expected to boost spending on AI servers, which are already projected to grow 19% annually through 2032. This is due to increasing demand for generative AI from popular applications such as ChatGPT and Midjourney.
In case you’re wondering, “generative AI” refers to applications that can create unique content from simple prompts submitted by users. As I shared with you earlier this year, ChatGPT is the fastest-growing app in history, reaching 100 million users in as little as two months after launch.
To run efficiently, these metaverse applications will need advanced graphics and AI processors, increasing investments in high-performance AI chips from companies such as NVIDIA and AMD and in data center operators such as HIVE Blockchain Technologies. According to projections by Bloomberg Intelligence, AI server spending could account for nearly 30% of total workload expenditures by 2032, a significant increase from approximately 15% in 2022.
Generative AI Could Be A $4 Trillion To $7 Trillion Industry
What can generative AI be used for in the “real world”? McKinsey & Co. found 63 such AI uses across 16 business functions, and if applied, they could create between $2.6 and $4.4 trillion in economic benefits on an annual basis. This would add 15% to 40% to the current $11 to $17.7 trillion potential value from non-generative AI and analytics.
Goldman Sachs’s projections are even more optimistic. According to the bank, advancements in generative AI could significantly impact the world economy, leading to a 7% rise in global GDP (equivalent to nearly $7 trillion) and a 1.5% increase in productivity growth over a decade…