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A skeptical look at AI investment

Goldman Sachs Exchanges

NOTE

Unusual Characteristics of AI Technology Transition

AI technology represents a unique transition in the tech landscape, diverging from the historical pattern where cheaper solutions replace more expensive ones. Instead of offering a cost-effective alternative, AI aims to supplant low-cost labor with a solution that is inherently expensive. This inversion of the traditional model raises concerns about the rationale and sustainability of adopting AI technologies, suggesting a need for careful consideration regarding their implementation and economic implications.

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