Goldman Sachs Exchanges AI Exchanges: Will falling costs drive new opportunities?
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Feb 4, 2025 
Kim Posnett, Global co-head of Investment Banking at Goldman Sachs, shares insights on the impact of low-cost AI models on tech spending and deal-making. The conversation delves into how these advancements may encourage greater AI adoption, even amidst market volatility. They explore the evolving role of AI agents and the shift towards new data economies. Posnett highlights the balance between reduced costs and the need for robust infrastructure, painting an optimistic picture of AI's future in various sectors.
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Low-Cost AI's Impact
- DeepSeek's low-cost AI tool raises questions about AI infrastructure and spending.
- This development potentially validates concerns about high capital costs and limited utility.
Jevons Paradox in AI
- Lower-cost AI may not negate prior spending, but could fuel further development.
- Reduced costs could lead to wider adoption and new use cases, justifying investments.
Accelerated AI Adoption
- Cost-effective AI could speed up application development and adoption.
- This mirrors historical technology trends, where lower costs drive broader use.