The Impact of Artificial Intelligence: A Wave of $200 Billion Investment Coming

According to Goldman Sachs, the multinational American investment bank, artificial intelligence could create significant changes in the Chinese stock market in the coming years and attract $200 billion in investment. However, analysts say that for this surge to be sustainable, the government needs to take steps supporting the economy. Goldman Sachs strategists point out the potential 19% rise in the China CSI 300 index by year-end with widespread use of artificial intelligence, predicting an annual increase of 2.5% in company profits in China. They state, “This could boost investor confidence and lead to over $200 billion flowing into the Chinese markets.” Nonetheless, experts argue that for China to fully benefit from the opportunities brought by artificial intelligence, the government must enact supportive policies. Measures such as increasing domestic demand, maintaining inflation, and addressing macroeconomic instabilities are deemed crucial for sustainable growth. If these incentives are not provided, the rise focused on artificial intelligence may not last. In recent years, the U.S. stock market has seen significant growth due to artificial intelligence. Since the launch of ChatGPT in 2022, the U.S. market has gained approximately $13 trillion in value, with Chinese shares underperforming during this period. Goldman Sachs advises investors to approach the Chinese artificial intelligence sector cautiously due to factors such as data privacy, regulatory barriers, national security risks, and restrictions on technology exports by Western countries creating uncertainty about the sector’s future. However, analysts suggest that if Chinese artificial intelligence companies can increase their market values by $3 trillion within the next year, it could translate into a global investment flow of $200 billion.