AI CapEx Investment Limited by Uncertain ROI

Goldman Sachs published a report stating that companies are expected to invest 1 trillion dollars in AI capital expenditures over the next few years, but AI productivity gains are predicted to be limited in the next 10 years. The ROI for AI could be significantly restricted due to high costs and unclear revenue projections. The report highlights the concern of replacing low-wage jobs with expensive technology, which contrasts with past tech transitions. The idea is that spending such a substantial amount on AI should result in more than just basic applications, questioning the economic sense of the investment.