Generative AI will usher in an era of innovation comparable to the introduction of cloud computing, according to Goldman Sachs The firm expects the broadest definition of artificial intelligence to drive almost $7 trillion in global economic growth over the next 10 years, with productivity growing by 1.5% over the same period. Within that, generative AI has a total addressable market of $150 billion, Goldman said. “AI is touted to be the next big shift in technology after the evolution of the internet, mobile and the cloud. We believe Generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications,” Goldman analysts wrote in a recent research report. Enabled by large language models, innovations like OpenAI’s ChatGPT , Microsoft’s AI-powered Bing search engine and Google’s Bard have renewed the buzz around AI. Traditional AI has been used for more analytical purposes, rather than creative. But generative AI is able to produce new content such as text, video, images or computer code — putting it a step ahead. “Generative AI tools have far-reaching implications across industries, from enterprise software to healthcare, financial services and more,” Goldman said. With the tech giants already incorporating it into their products, Goldman sees generative AI boosting sales, productivity and product innovation. Goldman said there will be opportunities for software companies to upsell and cross-sell products with AI. This will help increase customer retention and expand the customer base. How to play it Despite the potential for these tools to spearhead novel businesses and products across the tech industry, Goldman highlighted existing tech giants Microsoft , Salesforce and Adobe as the key leaders in the field. The firm raised its price targets on each of these companies, saying they stand to benefit from recent product announcements and their troves of customer data. Design software maker Adobe last…
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